Types of Codes
In an institution as large as the University of Illinois, codes must be used to account for, classify and identify the many assets under University custody.
Different types of codes used when accounting for fixed assets:
Additionally, the following information is available:
Account Codes
Account Codes (Definitions) (MS Excel)
Account codes are part of the Banner C-FOAPAL (Chart, Fund, Organization, Account, Program, Activity, Location) accounting string. An Account code designates asset, liability, equity, revenue, expenditure, and transfer account classifications.
It is important that a fixed asset's Account code properly reflect the item's cost and whether it is capitalized or expensed. The Account code also reflects how an item is tagged and whether it is inventoried and tracked in Banner as a fixed asset.
An Account code is usually assigned during the acquisition process. The Account code determines whether capitalization entries in the General Ledger are posted correctly. If an incorrect Account code is assigned to an item, it can affect the reconciling of a department's monthly operating ledger, as well as the department's inventory process. Incorrect Account codes must be corrected with a journal voucher in Banner.
Location codes
Location codes are part of the Banner C-FOAPAL (Chart, Fund, Organization, Account, Program, Activity, Location) accounting string. Location codes are the last segment of the C-FOAPAL string. They are used primarily with fixed assets to denote the geographic location of a fixed asset item. Every fixed asset equipment record must have an assigned Location code to identify the campus, building, and room where the equipment can be found. Location codes are an important tool for locating items during a department's biennial physical inventory. Location codes are also used in indirect cost rate calculations.
When a department acquires a new fixed asset item, the property contact must enter the item's Location code when the acquired item is added through FABweb. See the FABweb training guide (PDF) for information on how to enter a Location code for an item.
Condition codes
Condition codes indicate the status of a fixed asset, such as whether it is being used by the department, or is on loan to an employee. Every fixed asset record must have a condition code assigned to it.
It is important to update the correct condition code for an asset when the condition changes, because condition codes are used in calculating F&A (Facilities & Administration) overhead rate calculations. Condition codes are also generally reviewed by auditors.
See Section 12 Property Accounting of the Business and Financial Policies and Procedures manual for additional information for more information on condition codes.
Commodity Codes
A commodity code is a five-digit code used to categorize equipment for reporting purposes and also used to assign a useful life to an item for depreciation purposes. The University uses the five-digit National Institute of Governmental Purchasing (NIGP) codes as a standard for commodity codes. The first three digits of the code represent its major class; the last two digits represent the item within the class.
Every equipment record is assigned a commodity code, usually during the acquisition process. If an item is purchased, the buyer enters the commodity code on the requisition form when purchasing the new item. Departments must take care in assigning the correct commodity code for a newly acquired asset, because the commodity code determines the asset's useful life, which directly affects the annual calculation of depreciation. For example, the commodity code for an automobile is 07006, which carries a useful life of four years. The cost of the automobile would be depreciated over the course of four years.
Entity Codes
The Banner Fixed Asset record of each University asset used by any self-supporting activity must carry an "entity code" attribute that defines the kind of associated self-supporting activity. This permits exclusion of the equipment from indirect cost use charges or inclusion of it in excess funds and depreciation calculations.
Entity Codes required when applicable: All equipment used in self-supporting activities, regardless of the source of funds used to purchase the item, must have an entity code assigned to the Banner Fixed Asset record. Units are required to periodically review these equipment records to ensure they are current Units must request the needed changes to the entity code assignment by completing the Entity Code Change Request form mentioned below. Entity code review is also conducted as part of the biennial physical inventories.
Entity codes defined
A series of four-digit numeric codes (3100, 3110, etc…) identifies the type of self-supporting activity, or "entity," for which the equipment is currently used. The entity code assigned corresponds to the Banner Fund Level 3 Code in the hierarchy of the self-supporting fund that records the revenue associated with the equipment's use. Entity codes represent a "User Defined" code in Banner Fixed Asset. More details of the codes and related requirements are found in Section 12 Property Accounting of the Business and Financial Policies and Procedures manual for additional information.
Reporting changes to Entity codes
When changes in the use of equipment require reassignment of the equipment to another entity or to no entity at all, units must report necessary entity coding changes to University Property Accounting and Reporting (UPAR) by submitting a completed Entity Code Change Request form (MS Word) in an email with subject heading “ENTITY” sent to UPAR at obfsuafrproperty@uillinois.edu.
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Last Updated: July 14, 2008