{"id":27059,"date":"2025-01-17T10:10:38","date_gmt":"2025-01-17T15:10:38","guid":{"rendered":"https:\/\/qa.www.purdue.edu\/treasurer\/finance\/\/?page_id=27059"},"modified":"2026-03-23T14:21:27","modified_gmt":"2026-03-23T18:21:27","slug":"accounting-and-financial-management-governance-balance-sheet","status":"publish","type":"page","link":"https:\/\/www.purdue.edu\/treasurer\/finance\/controller\/accounting-services\/governance-manual\/accounting-and-financial-management-governance-balance-sheet\/","title":{"rendered":"Accounting and Financial Management Governance – Balance Sheet"},"content":{"rendered":"\n

Accounting and Financial Management Governance – Balance Sheet<\/h1><\/div><\/div><\/div>
<\/span><\/div><\/div><\/div>\n\n\n\n
\n

The Balance Sheet represents the financial position of the University and Business Areas at a particular point in time. The Balance Sheets are represented as Assets, Liabilities, and Equity\/Fund Balance\/Net Position.<\/p>\n\n\n\n

\n

Assets<\/p>

\n

Assets represent resources available to meet current obligations<\/p>\n\n\n\n

Examples: Cash, Receivables and Capital Assets<\/p>\n\n\n\n

Asset GL\u2019s start with 1XXXXX<\/p>\n\n\n\n

All Asset GL\u2019s, except for Allowances, should be a Debit balance<\/p>\n\n\n\n

Allowance accounts should be a Credit balance<\/p>\n\n\n\n

Cash<\/p>

\n

GL\u2019s 101400 \u2013 101425<\/p>\n\n\n\n

System Generated<\/p>\n\n\n\n

Business Areas cannot post directly to cash GLs<\/p>\n\n\n\n

General Fund cash is allocated to Business Areas when the budget is posted (49500X)<\/p>\n\n\n\n

Expenses use cash throughout the year<\/p>\n\n\n\n

At the end of the year, the remaining balance is carried forward<\/p>\n<\/div><\/div>\n\n\n\n

Change in Revolving Funds<\/p>

\n

GL\u2019s 10145X<\/p>\n\n\n\n

The terms change fund, cash fund, and revolving fund are often used interchangeably<\/p>\n\n\n\n

Usage is limited to approved areas only<\/p>\n<\/div><\/div>\n\n\n\n

FI-AR Recon Account<\/p>

\n

University Accounts Receivables<\/a><\/p>\n<\/div><\/div>\n\n\n\n

Travel Receivables<\/p>

\n

GL 102530<\/p>\n\n\n\n

Used for expenses that occur on a travel card or cash advances approved by the Travel office<\/p>\n\n\n\n

The traveler prepares an expense report and expenses owed back will credit this GL to reduce the receivable<\/p>\n\n\n\n

Reconciled monthly by Accounting<\/p>\n<\/div><\/div>\n\n\n\n

Inventory<\/p>

\n

GLs 107xxx<\/p>\n\n\n\n

GL 107180 is EAM inventory \u2013 system generated postings<\/p>\n\n\n\n

Other inventory GLs are recorded by departments<\/p>\n<\/div><\/div>\n\n\n\n

Capital Assets<\/p>

\n

GLs 155xxx \u2013 Original acquisition values of capital assets<\/p>\n\n\n\n

GLs 156xxx \u2013 total accumulated depreciation of capital assets<\/p>\n\n\n\n

The sum of the 155xxx & 156xxx GLs is the net book value of the capital assets<\/p>\n<\/div><\/div>\n\n\n\n

Backstop Receivable<\/p>

\n

190060 Backstop Receivable (Asset)<\/p>\n\n\n\n

GL 190060 posts as transfer CI 496100 in FM<\/p>\n\n\n\n

Currently only for capital projects, and must have approval to use<\/p>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n

Liabilities<\/p>

\n

Liabilities represent obligations to pay for a product received or a service provided<\/p>\n\n\n\n

Examples: Vendor and S&W Payables<\/p>\n\n\n\n

Liability GL\u2019s start with 2XXXXX<\/p>\n\n\n\n

Typically, Liability GL\u2019s should be a Credit balance<\/p>\n\n\n\n

Vendor Payables<\/p>

\n

GL 201010 \u2013 vendor payables for payments pending to be paid to vendors<\/p>\n\n\n\n

GL 201015 \u2013 GRIR<\/p>\n\n\n\n

GL 201071 & 201080 \u2013 vendor payables related to SUA<\/a> payments to vendors <\/p>\n<\/div><\/div>\n\n\n\n

Sales and Innkeepers Tax<\/p>

\n

GL\u2019s 201300 – 201315<\/p>\n\n\n\n

Amounts collected from customers for sales tax are recorded by Business Area as a liability<\/p>\n\n\n\n

The tax department will clear the liability amounts from Business Areas with each payment of the tax<\/p>\n<\/div><\/div>\n\n\n\n

S&W Payables<\/p>

\n

GLs 202010 & 202020<\/p>\n\n\n\n

System generated monthly accrual for salary & wages payable<\/p>\n<\/div><\/div>\n\n\n\n

Backstop Payable<\/p>

\n

290060 Backstop Payable (Liability)<\/p>\n\n\n\n

GL 290060 post as transfer CI 496100 in FM<\/p>\n\n\n\n

Currently only for capital projects, and must have approval to use<\/p>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n

Equity<\/p>

\n

Equity represents the financial position and ability to pay future obligations (liabilities)<\/p>\n\n\n\n

GL\u2019s start with 3XXXXX<\/p>\n\n\n\n

Balances do not change during the fiscal year<\/p>\n\n\n\n

At year-end (June 30th<\/sup>), revenue and expenses close to the equity GL\u2019s and the new balance carries forward on the balance sheet in period 0New fiscal year revenue and expense will accumulate during periods 1-12<\/p>\n<\/div><\/div>\n\n\n\n

Commitment Item Hierarchy<\/p>

\n

Quick Reference Guide<\/a><\/p>\n<\/div><\/div>\n\n\n\n

Academic Areas<\/p>

\n

Balance Sheet Responsibility Grid<\/a><\/p>\n<\/div><\/div>\n\n\n\n

Best Practices<\/p>

\n
    \n
  • Debits and credits should be consistent with the type of Balance Sheet account.<\/li>\n\n\n\n
  • Balances should be adjusted daily, monthly, quarterly or monthly depending on the type of Balance Sheet account.\n
      \n
    • Balances that are unchanged for multiple fiscal years should be understood taking into consideration the current (less than one year) versus long term (greater than one year) resource or obligation.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
    • Physical Access\/Safeguarding<\/li>\n\n\n\n
    • Internal Control\/Separation of Duties<\/li>\n\n\n\n
    • Review Z100 at year end and for the current operating period.\n
        \n
      • Drill into by Fund<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n
          \n
        • BPR Capital Assets Conversion GL\u2019s\n\n\n\n\n
            \n
          • Assets retired in the legacy fund\u2019s\/ba\u2019s\n
              \n
            • Asset value credited, accumulated depreciation debited<\/li>\n\n\n\n
            • 568020 \u2013 Plant Assets Retired debited for NBV<\/li>\n\n\n\n
            • 380010 \u2013 Fixed Asset Conversion Acct credited for NBV to offset net equity impact of 568020 entry<\/li>\n\n\n\n
            • All entries were statistical in FM<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n
                \n
              • Asset value debited, accumulated depreciation credited\n
                  \n
                • Assets recapitalized in the new structure<\/li>\n\n\n\n
                • 568020 – Plant Assets Retired credited for NBV<\/li>\n\n\n\n
                • 380010 \u2013 Fixed Asset Conversion Acct debited for NBV to offset net equity impact of 568020 entry<\/li>\n\n\n\n
                • All entries were statistical in FM<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/div><\/div>\n<\/div>\n<\/div>\n\n\n\n

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