FEC Change Effective 7/1/10
Due to new federal tax return reporting requirements for the university, effective 7/1/10 we have made a change that will require revenue account combinations to use a Functional Expense Category (FEC) greater than "00" (the FEC is the fourth segment of the 24 digit account combination). The type of account, either operating or a project, will determine which FEC to use. For example, through the end of fiscal year 2010, a miscellaneous revenue account combination in the Controller's Office would be 01.15000.59000.00.00000.00000; effective July 1, the account will be 01.15000.59000.35.00000.00000. Accounting will change all existing account combinations in Oracle to include the appropriate FEC by 7/1/10. Departments should use the new account combinations beginning 7/1/10 for fiscal year 20011 transactions including accounts receivable, and payroll.
Listed below are rules to use to determine which FEC to use on your revenue accounts:
- All tuition revenue accounts, 50000 - 50910, will use Instruction FEC 10.
- All revenue accounts on scholarship projects, 20000 - 24999 and 60000 - 69999, will use Instruction FEC 10.
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Revenue accounts on a department's operating or capital equipment account, project 84200, will use the same FEC that is used on the department's operating expense accounts.
- If a department charges expenses on their operating account to accounts with a 10 FEC, then any revenue accounts on their operating account will also use a 10 FEC. For example, the Electrical Engineering department currently charges office supplies to account 01.63100.73150.10.00000.00000; effective July 1, their will deposit miscellaneous income to account 01.63100.59000.10.00000.00000.
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Revenue accounts on a project within the following ranges will use the same FEC that is used on the project's expense accounts:
- 10000 - 19999
- 25000 - 59999
- 70000 - 84199
- 84201 - 89999
- A0000 - P9999
- Scholarship project expense accounts will be changed from a 30 FEC to a 10 FEC in FY 2011 - more information about this change will be provided at a later date.
- Agency & Student Organization accounts (projects 90000 - 99999) are excluded from these changes.
In order to allow time to make these changes, Student Financial Services, Payroll, and other departments on campus will be making changes to their systems during May and June. You may see two revenue accounts on your account detail during this time with the same object codes but different FECs.
Detailed information about account segments including FECs is available on the Controller's Office web site at: http://finweb.rit.edu/controller/accounting/accounts.html
If you have any questions regarding these changes please contact Gary Maccarone at ext. 5-2237.
