NetSuite: Chart of Accounts

This Document is Machine Translated

An edited version is coming soon.

Last Update by IFM: February 6, 2019

NetSuite is a global financial software package, which allows us to both streamline the chart of accounts on a global level and have flexibility on the local level. The desired outcome in all ministries is a chart of accounts that meets the ministry’s current needs, has room for expansion, and is globally consistent with all other CCC ministries.

  • Reporting will be consistent across the ministries in the Regions (and globally): the account categories mean the same in all ministries.
  • Defining new accounts will be easy: the global structure shows where a new account should go. The ministries can determine their desired detail and granularity beyond the globally defined main categories.
  • Communication, training and transitions between ministries will be smoother, as terms and numbers have uniform meaning.
  • The accounts are grouped on various levels, allowing reporting and analysis using selected groups and categories.
  • The detail in the chart of accounts is designed to allow reporting according to IFRS (International Financial Reporting Standards), US GAAP,  and local statutory guidelines.

The NetSuite chart of accounts is new - different from the past. The transition to the new software is an excellent time to review, revise, update, change or amend the current chart of accounts in all ministries:

  • Set up a structure that corresponds with current realities and the global definitions of the accounts.

  • Set up an account structure that gives adequate detail for reporting and management needs in the ministry.

  • Remove unnecessary, unhelpful or otherwise obsolete accounts, avoiding unnecessary detail and inconsistencies.

  • Name the accounts accurately and correctly in the language that is helpful for the users in the ministry.

Account categories not needed by a ministry during the initial implementation will be made invisible. They can be added or activated later when the ministry grows and needs to have adequate detail to comply with the global standard and management requirements.

Structure

Each account will have two parts:

  • a numerical value (usually 4 digits; 5 digits for bank accounts) based on the established global chart of accounts and the local detail level of accounts (subaccounts).
  • the 3-letter ministry code, based on the ministry database. This is entered automatically in data entry but needs to be specifically set up when accounts are created. Since the account numbers are the same across the global movement, this part is needed to distinguish a ministry’s information from that of other ministries.

Each person can see the accounts and data only for their ministries; the Global finance team can see the information and data for the ministries in their Region. The global finance team and global system administrators can view the information in all ministries.

Overall Structure

  • The chart of accounts described in this document is the minimum detail for each ministry, i.e. the definition of the global categories and definitions must be adhered to. It is also understood that not all ministries need all the accounts, so unnecessary categories or accounts will be made invisible until they are needed.
  • The three levels in this chart and the fourth level (see below on Account detail and descriptions) represent non-postable groupings of the accounts. Each ministry will create their own postable chart of accounts within the fourth level.

This chart gives the top structure of the global chart of accounts. The account categories are further split into sub-categories (see further below), and within those sub-categories, each ministry can set up the subaccounts for their use.

Account Group

Account Sub-Group

Account Category

1000 Assets
1100-1500 Current Assets 11000 Banks and cash and credit cards
1200 Receivables
1300 Inter-CCC fund transfer clearing (transmittal)
1400 Products for sale
1500 Advances and other current assets
1600-1900 Non-current assets 1600 Investments
1700 Fixed assets and depreciation
1900 Other non-current assets
2000 Liabilities
2100-2600 Current liabilities 2100 Payroll items payable
2200 Payables (accounts payable)
2300 Inter-CCC funding transfer clearing (transmittal)
2400 Trust accounts
2600 Other current liabilities
2700 Non-current liabilities 2700 Long-term liabilities
3000 Equity, reserves and fund balances
3100 Share capital
3200 Reserves
3500 Beginning fund balance
3900 Net income (loss) year-to-date
4000 Local income
4100 Contributions - local
4300 Product sales
4400 Program income
4900 Other income
5000 Income from CCC
5100 Contributions from other CCC
5300 Contra inter-CCC income
5600 Subsidy funding from other CCC
6000 Income transfers to CCC
6100 Contribution transfers to other CCC
6300 Contra inter-CCC income transfers out
6600 Subsidy funding to other CCC
7000-8000 Expenses
Our people 7100 Personnel expenses
Our programs 7200 Conferences and meetings
7300 Media, printing and products (mass distribution)
Our travel 7500 Travel and transportation
Our operations 8100 Supplies and non-capitalized equipment
8200 Communications
8300 Technology
8400 Professional services
Our places 8600 Capital expenses
8700 Facilities
8900 Other expense
9000 Internal transfers
9100 Internal income transfers
9500 Internal expense transfers
 

Global accounts, mandatory and automatic accounts

“Global accounts” are system-wide accounts that are set up for all ministries globally. These are accounts that are used in the (automated) transmittal process. It is therefore essential that they are correctly set up in all ministries.

Note:

  • For these system accounts, the country code will be “system” (instead of the country code). 
  • Do not set up an account with the same 4-digit number (but with your country code) as the system (global) account. 
  • These accounts will not need to be listed in your individual chart of accounts. They are set up as global accounts, and all ministries will by default have them in their accounts.
  • Even though these are global accounts, each ministry will see their own transactions.
The global accounts are marked as “global system accounts” in the descriptions below.
The following accounts are global accounts: 1239, 1311, 1511, 1519, 1521, 2239, 2651, 2653, 3500, 3991, 4111, 4921, 5111, 5199, 5399, 5611, 5699, 6111, 6399, 6611, 8931, 8932, 8941, 8942, 8999, 9111, and 9511.
The following accounts are mandatory but not global system accounts: 1231, 2221, 2231, and 5621.
The following accounts are created automatically in ministries that have a VAT/GST bundle installed: 153x and 264x accounts (GST receivables and GST payables). 
 

Account detail and descriptions

Any subdivision on the local level, beyond the globally standardized account sub-category, is called a subaccount (note that this term will no longer be used for responsibility centers, as Dynamics users may have been used to).
Subaccounts can be created for any account category with the exception of 3500 and 3900 (fund balance and net income). Some subdivisions will be mandatory, as indicated below. In all other cases, they are optional, although they may be recommended. Accounts typically (or possibly) needed by only a few ministries are noted as “if needed”.

The (sub)account number is four digits long.

  • In the globally defined structure, any number that ends in a zero (0), is a summary account (category or sub-category) and thus non-postable (entries cannot be made into it). This allows for summarization on different levels (e.g. local income accounts are summarized into total local income, and all income accounts are summarized into total income).
  • An exception to the subaccount length is the number for cash and banks (5 digits). Having five digits allow a ministry to have 99 bank accounts (from 11101 to 11199) and cash accounts (from 11201 to 11299).
  • Accounts (i.e. the subaccounts the ministry wants to use) in a ministry should end in a digit other than 0, except for bank accounts.

A ministry creates their chart of accounts within the account sub-categories described below. Create as many (sub)accounts as will be useful and necessary for the ministry. Given the length of the account number, the maximum number of subaccounts within any sub-category is nine (9) (and for bank accounts, 99).

To define an account number in a ministry, substitute the final number of the global detail (zero) with any other number. Thus, for instance, if there is only one bank account, the number is 11101. Further bank accounts would be 11102, 11103, etc. Payroll taxes payable would be 2121, but if there is more than one type of tax to keep track of, the others would then be 2122, 2123, 2124, etc.

Not all accounts or account categories are needed in all ministries. However, if the ministry does have any of the items described by specific accounts, a subaccount needs to be set up, i.e. other groupings cannot be used for the purpose indicated in the listing below.

 

11000 Banks and cash

11100 Banks: Any bank account for any part of the ministry, in any location, including cash in transit between bank accounts.
11200 Cash: Any cash account in any part of the ministry, in any location, such as cash on hand, cash pending deposit into a bank account, petty cash, cash held by local teams or events, etc.
 

11300 Credit cards (if needed)

11300 Credit card accounts: Bank accounts that are tied to credit cards
 

1200 Receivables

Money owed to the ministry by staff, employees or outsiders, either as short-term loans or money for services or goods supplied by the ministry.
1220 Local ministry balances (if needed): Balances of funds given to local teams or events (e.g. conferences) for their cash needs, usually on an imprest basis. 
If the local team has a bank account in the ministry’s name, the balance held by them should instead be a bank account in the 11100 category. 
1230 Receivable from CCC (mandatory): Amounts receivable from another CCC ministry (but not within the same NetSuite entity). Typically, these would be expenses incurred on behalf of another ministry or receivables from sales or services. This account is the reverse side of account 2230 (Payable to other CCC). 
Note that this account does  not include cash held by Global or Regional offices on behalf of the ministry. 
1231-1238 Receivables from CCC non-IT (1231 mandatory but not global): Receivable from other CCC entities but not via transmittals. Since the customer records in NetSuite will keep track of which exact CCC ministry owes you the money, the separation into subaccounts is not necessary for the purpose of identifying the other CCC ministry. Thus you would likely only need one of these accounts. 
1239 IT receivable clearing (global system account): Account used by the transmittal process to clear receivable balances between ministries
Note: A receivable from another CCC must first be recorded in account 1519 (debit), and the transmittal process will automatically debit 1239 and credit 1519. The original debit to 1519 comes from either an expense report, a bill payment, or a manual journal entry. 
1240 Short-term loans receivable (if needed): Short-term loans given, or the short-term portion of a long-term loan given. 
In balance sheet terms, short term is one year (in cash position terms, it is three months). (See 1610 for the long-term portion of a long-term loan.)
The person or entity owing the money will be in a customer record, so there is no need to set up separate accounts based on who owes you the money.
1250 Accounts receivable - trade (if needed): Accounts receivable from sales, conference fees, tuition, usually from outsiders.
Subdivisions: If there is a significant volume of receivables from different types of services, create a different subaccount for each of them (1251, 1252, etc.). The customer records in NetSuite will keep track of who owes you the money, but the account can be used to describe the general types of the receivables (sales, conferences, etc.).
1260 Allowance for doubtful accounts (if needed): This account is used by ministries that do a significant amount of sales and need to record an allowance for trade receivables that may not be collectible. 
1290 Other receivables (if needed): Any other type of receivable that a ministry may have with any relevant subdivision.
 

1300 Inter-CCC fund transfer clearing (transmittal)

1310 Inter-CCC fund transfer clearing (1311 global system account): Account used by the automated transmittal system to process the transaction flow between CCC ministries. This account acts as the bank account for the transmittals, since the process does not know which bank account code to use in each ministry.

Once a transaction lands in 1311, it should be transferred to the bank account where the money landed. The balance in 1311 should be zero once the transmittal transaction has been completed.

 

1400 Products for sale (if needed)

1410 Ministry resources (1411 Inventory asset, global system account): Value of ministry resources held for sale. The value should be based on a periodic physical count of items in stock, and individual items are valued at the lower of the cost price or sale price. The items are considered to be for sale (saleable) and thus a current asset if they can typically be sold within a maximum of 3-5 years, faster in large and/ or established ministries.

Note that the system account, 1411, is the only account in this category that will work with theautomated NetSuite inventory calculation.

1490 Other products for sale (if needed): Any other products held for sale, e.g. coffee in ministries using internet cafes as a way of doing Business As Mission (BAM). 
 

1500 Advances and other current assets

1510 Advances: Advances given to staff or employees for ministry expenses or salaries. 
Subdivisions: 
  • 1511 (global system account): advances other than salary advances to any person
  • If salary advances are given, another advance account (between 1512 and 1518) will be needed for this purpose.
  • 1519 Charge to other CCC (global system account): account used to charge expenses that will be passed on to other CCC ministries.
1520 Undeposited funds (1521 global system account): Used in donation processing when income accounts are credited. This account is debited. When the cash is deposited or when the bank entry is made, this account is credited. The normal balance should be zero. 
1530 VAT/GST receivable (1531 automatic system account where applicable): In the countries where VAT/ GST entries are required, a NetSuite bundle will be installed for that purpose. This bundle will create account 1531 for VAT/GST receivable. 
1550 Deposits: Deposits made with a supplier to secure a service (e.g. a telephone line or an office) or a facility (e.g. for a conference). These may or may not be returned within a year (and in some cases not at all) but they are still considered current assets in terms of accounting and tracking. 
1560 Prepaid and deferred expenses: Expenses paid in the current fiscal year that belong to a following fiscal year. These are typically recorded only at year-end by reversing the expense and debiting this account, and this year-end adjustment is immediately reversed in the new fiscal year. This transaction moves the expense to the correct fiscal year.
1590 Other current assets (if needed): Any other current assets that do not fit into any of the groupings above.
 

1600 Investments (if needed)

1610 Long-term loans given (if needed): Long-term loans given. The short-term portion of the long-term loan should be adjusted to account sub-category 1240 at the end of the fiscal year.
1620 Investment in properties (if needed): Properties owned by the ministry for the purpose of earning money through rentals. These properties are not used for ministry purposes (i.e. not as offices or meeting locales), and they were purchased for the sole purpose of being rented out  - and later to be sold - where the rentals constitute a source of income to the ministry. 
1630 Accumulated depreciation - investment properties (if needed): Accumulated depreciation on any property recorded in account 1620. 
1640 Investment in subsidiaries (if needed): A ministry may invest funding in its subsidiaries, which constitutes a long-term asset. 
1650 Investment in stocks (if needed): If a ministry invests in stocks, the fair market value is recorded here. Contact your Global Finance Partner for more information on policies and issues related to investments. 
1690 Other investments (if needed): Any other long-term investment made by the ministry.
 

1700 Fixed assets 

1710 Land (if needed): The acquisition cost of land owned by the ministry, including any legal fees, realtor fees etc. associated with the purchase.
1720 Buildings and improvements (if needed): Acquisition or construction cost of buildings owned by the ministry or significant improvements (additions that increase the value) to such property. This does not include the repairs and maintenance which are recorded as expenses.
1730 Furniture: Purchase cost of furniture where the cost of an individual, functional piece (e.g. one chair of a group of chairs) exceeds the rounded equivalent of USD500 (or another amount if legally required in the country), and the item will under normal circumstances be functional and useful to the ministry for at least five years. 
1740 Equipment: Purchase cost of equipment where the cost of an individual, functional piece exceeds the rounded equivalent of USD500 (or another amount if legally required in the country), and the item will under normal circumstances be functional and useful to the ministry for at least five years. 
1750 Vehicles (if needed): Purchase cost of ministry-owned vehicles.
1770 Other fixed assets (if needed): Any other fixed assets that the ministry may own, if the cost of an individually functioning piece exceeds the rounded equivalent of USD500 and the item will under normal circumstances be functional and useful to the ministry for at least five years. 
1780 Accumulated depreciation: Accumulated depreciation for the fixed assets of the ministry (account sub-categories 1720-1770).
Recommended subdivision: It is highly recommended that the accumulated depreciation is accounted for by type of asset; this makes for easier tracking:
  • 1782 Accumulated depreciation - Buildings and improvements (with the last digit corresponding to the third digit of the above asset account)
  • 1783 Accumulated depreciation - Furniture
  • 1784 Accumulated depreciation - Equipment
  • 1785 Accumulated depreciation - Vehicles
  • 1787 Accumulated depreciation - Other fixed assets
 

1900 Other non-current assets (if needed)

1910 Intangible assets (if needed): The value of intangible assets, such as copyrights, trademarks, patents, franchises owned by the ministry.
1920 Accumulated amortization - intangible assets (if needed): Accumulated depreciation for the intangible assets in account group 1910.
1990 Other non-current assets (if needed): Any other long-term asset owned by the ministry that does not fit into any of the above groupings.
 

2100 Payroll items payable (if needed)

Any payroll related amounts payable to either the staff member or employee, or to tax authorities, insurance companies etc.
2110 Net salaries payable: Net salaries payable to staff and employees after the payroll has been processed.
2120 Payroll taxes: Taxes payable on the salaries, including both employee and employer portions.
Subdivision: Subaccounts can be used to differentiate between various types of payroll taxes or between the entities that the taxes are to be paid to. The vendor records in NetSuite will keep track of the amounts payable by entity as well but you may want to have separate subaccounts for easier overview or reconciliation.
2130 Benefits payable: Benefits payable for staff and employees, e.g. insurance, retirement benefits (provident fund). This includes both employee and employer portions.
Subdivision: If the benefits are paid to more than one entity, this account can be divided into related subaccounts (besides 2131, also 2132, 2133 etc.). The vendor records in NetSuite will keep track of the amounts payable by entity as well but you may want to have separate subaccount for easier overview or reconciliation.
2190 Other payroll items payable (if needed): Any other payroll related item payable.
 

2200 Payables (accounts payable)

2210 Accounts payable to vendors - trade: Invoices payable to outsiders (vendors) for goods and services. 
The NetSuite vendor records will keep track of the balances by vendor, so that it will not be necessary to have a subdivision by the entity you owe the money to. 
2220 Payable to staff and employees (mandatory): Expense reports (reimbursements) owed to staff and employees. 
The vendor records will keep track of balances by staff (or employee). 
2230 Payable to other CCCAmounts owed to other CCC ministries to be paid via transmittal but not including transmittal balances.
2231-2238 Payable to CCC non-IT (2231 mandatory but not global system account): Payables to other CCC entities but not via transmittals. Since the customer records in NetSuite will keep track of which exact CCC ministry you owe the money to, the separation into subaccounts is not necessary for the purpose of identifying the other CCC ministry. Thus you would likely only need one of these accounts.
2239 IT payable clearing (global system account)Account used by the transmittal process to clear payable balances between ministries
This is the opposite of account 1239. 
2240 Accruals: Expenses incurred in current fiscal year but not paid before the close of the year.
Suggested subdivision: 
  • 2241 Accrued expenses: expenses for which there is an invoice
  • 2242 Anticipated expenses: expenses incurred but there is no invoice at the time of year-end closing and the amount owed must be estimated
2250 Non-payroll taxes payable (if needed): Taxes payable that are not payroll related and not GST or VAT, such as property taxes (rates) etc. 
2290 Other payables (if needed): Any other short-term payable that does not fit into any of the above groupings.
 

2300 Inter-CCC funding transfer clearing (transmittal)

2310 Inter-CCC funding transfer clearing: This account is the reverse side of account subcategory 1310. It will likely not be needed but there is room for such an account in the chart.
 

2400 Trust accounts (if needed)

Funds held on behalf of others or for staff
2410 Trust accounts (if needed): In rare cases, a ministry is legally required to show funds held on behalf of others as balance sheet items instead of responsibility center balances. These are considered funds held in trust or trust accounts. 
Subdivisions: Depending on the need and trust account structure, set up as many subaccounts as necessary (but not 249x, see below). 
2490 Internal benefit fund (if needed)
Note: Some  ministries have internal benefit funds where government provided benefits are not adequate for retirement. If these funds have first been recorded as income/ expenses, then included in payroll and appropriate declared as taxable income, the portion held constitutes an internal benefit fund
If the benefit is simply set aside as funds held in reserve, it will be an internal transfer into a responsibility center, not a trust fund and thus not a balance sheet item. 
If an internal benefit fund exists, use 2491 for this purpose.
 

2600 Other current liabilities

2610 Short-term loans and current portion of long-term loans (if needed): Loans payable either within one year or on demand, and short-term (current) portions of long-term loans. 
“Short term” is one year for balance sheet purposes, although for cash position report purposes it is only three months.
2620 Deferred income: Income for sales or services received in one fiscal year where the corresponding service will not be provided until a future fiscal year (e.g. conference fees received in June when the conference is in August, and the year-end is June 30). This does not apply to donations or subsidies where no corresponding services or goods are provided. 
These are typically recorded only at year-end by reversing the income and crediting this account, and this year-end adjustment is immediately reversed in the new fiscal year. 
2630 Capital leases (if needed): Amounts owed on fixed assets being purchased through a lease agreement. This is for leases where the ministry will own the asset after the payments have been completed.
2640 VAT/GST payable (automatic system account where applicable): In the countries where VAT/ GST entries are required, a NetSuite bundle will be installed for that purpose. This bundle will create account 2641 for VAT/GST payable. 
2650 Refunds and accrued purchases
2651 Refunds payable (global system account): This account is used when donations (or invoices) need to be refunded to the donor or customer. NetSuite posts the intended refund into this account, and it is cleared when the refund is returned to the donor or customer. 
2653 Accrued purchases (global system account): This account is used by the inventory system when inventory has been received but the purchase of the materials for sale has not been paid yet. 
2690 Other current liabilities: Any other current liabilities that do not fit into any of the groupings above.
 

2700 Long-term liabilities (if needed)

2710 Long-term loans (if needed): Loans received where the payment is not, and will not be, due within one year. The portion due within 12 months will need to be recorded in account 2610 at least at year-end.
2790 Other long-term liabilities (if needed): Any long-term liabilities (not payable within 12 months) that are not loans.
 

3100 Share capital (if needed)

3110 Share capital: Ownership shares sold to investors 
 

3200 Reserves (if needed)

3210 Foreign exchange translation reserve (if needed)Net income (loss) from unrealized exchange differences (account category (4930, 8940) 
3290 Other reserves (if needed): Any other reserve that is part of the fund balance, such as an endowment 
 

3500 Beginning fund balance (global system account)

3500 Beginning fund balance: The fund balance from the previous fiscal year, or the net total of income and expenses since the beginning of the ministry. This account is, of course, mandatory, although it is non-postable (posting happens automatically by NetSuite). 
The system account is 3500. No local account needed, and no subdivision allowed.
 

3900 Net income (loss) year-to-date (global system account)

3990 Net income (loss) year-to-date: The difference between income and expenses in the current fiscal year. This account is marked as portable, although the posting takes place automatically by NetSuite. 
The system account is 3991. No subdivision allowed.
 

4100 Local contributions

4110 Local contributions: Contributions received directly from non-CCC sources, regardless of their location.
4111 Contributions from local donors (global system account): Contributions received from donors that normally reside in the country of the ministry. The purpose is to measure true locally generated donations. 
An additional, optional field is available to indicate whether this donation is “truly local” (= from a donor from your particular country) or if it is “non-local” (= from a donor who resides outside of the country or is an expatriate in the country). 
4120 Contributions - gifts in kind (if needed): Non-cash donations received. These are usually significant amounts, e.g. vehicles, free rental etc.
 

4300 Product sales (if needed)

4310 Sale of ministry resources (4311 Inventory income, global system account): Income from sale of ministry resources or products. These may or may not be part of the inventory in account 1410.

Account 4311 is the income account that will work with the automated inventory calculation in NetSuite.

4390 Other product sales (if needed): Income from sale of products other than ministry resources (typically when the ministry is engaged in Business As Mission, or BAM). These may or may not be part of the inventory in account 1490. 
 

4400 Program income

4410 Conference income: Conference income received, i.e. participation fees. This does not include donations received for or during the conference (use 4110 instead) nor sale of ministry resources during the conference (use 4310 instead). 
4420 Project fees: Fees collected for participation in a project, mission trip etc.
4430 Tuition fees (if needed): Fees received for a course, class or other such educational opportunity organized by the ministry, often with some level of certification. 
4490 Other program income: Any other income received for an organized event or function that does not fit into any of the above groups that is not a donation, subsidy, participation fee or sales income.
 

4900 Other income

4910 Investment income: Income received from investments 
Possible subdivisions:
  • interest income
  • rental income
  • dividends
  • etc.
4920 Foreign exchange gain (realized) (4921 global system account): Foreign exchange gain received from an actual transaction  
See 8930 for realized exchange losses.
4930 Foreign exchange gain (unrealized): Estimated foreign exchange gain on balances held in foreign currencies
See 8940 for unrealized exchange losses.
4990 Other income and gains: Any other income or gain that does not fit into any other income category. 
Possible subdivision (as needed):
  • gain on sale of fixed assets (see 8990 for losses)
  • service income
  • tax return (but not refundable GST or VAT)
  • other income (e.g. sale of items that are not fixed assets)
  • etc., as needed.
 

5100 Contributions from other CCC

5110 Contributions from other CCC (5111 global system account): Contributions received from or through other CCC. Contributions are funds that the ministry or its staff raise through direct contact with  external donors, and they maintain the primary contact directly with the donor (which is not another CCC entity). 
The NetSuite transmittal flow will keep track of the original sender, the intermediate senders and the final destination of the contributions between CCC ministries. It is thus not necessary to have further subdivision by sending ministry in the chart of accounts.
5199 IT clearing - donations (global system account): This will be used for the donations received through the automatic transmittal process, which credits all donations into this account. Your office will then use the journal function to transfer the income to appropriate accounts (and segments). 
This account will use the global system responsibility center “IT clearing” only.
The balance in 5199 should always be zero.
 

5300 Contra inter-CCC income 

5390 Contra inter-CCC income (5399 global system account): This account is used to debit contributions received from the Global or Regional office before the actual cash is received. 
The income on the transmittal is recorded in the appropriate income accounts (first 5199 by the system, then journalized to 5111, and first 5699, then journalized to 5611 or 5612). The portion not immediately received as cash is debited to 5399. Donations and subsidies are voluntary contributions and can therefore not be recorded as balance sheet receivables. 
This account will use the global system responsibility center “IT contra” only. 

When actual cash is later received, this account and the “IT contra” responsibility center are credited.

 

5600 Subsidy funding from other CCC 

5610 Subsidies from other CCC (5611 global system account): Subsidies (other than allocation) received from or through the Global or Regional office (or by the Regional office from WHQ). 
Subsidies are funds raised for your  ministry by another ministry where that ministry has the main contact with the external donor, or the other giving ministry allocates funds from their general funds. This includes Jesus Film funding, funding by the Global Executive Team or the Global VP teams etc.
5620 Allocation from other CCC (mandatory): The central funding allocated by the global Executive team to national ministries. 
5699 IT clearing - subsidies (global system account): This will be used for the subsidies (including allocation) received through the automatic transmittal process, which credits all subsidies into this account. Your office will then use the journal function to transfer the subsidies to appropriate accounts (and segments). 
This account will use the global system responsibility center “IT clearing” only.
The balance in 5699 should always be zero.
 

6100 Contributions to other CCC

6110 Contribution transfers to other CCC (6111 global system account): Contributions sent to other CCC. These may be received from donors for these other CCC ministries or their staff, or staff members may donate funds from their staff accounts to other countries. (Typically, if the funding comes from a ministry responsibility center and is somewhat significant, it would be considered a subsidy - see 6610 below - rather than a contribution.)
 

6300 Contra inter-CCC income transfers out

6390 Contra inter-CCC income transfers out (6399 global system account): This account is used to credit funds intended to another CCC ministry before the actual cash is sent. 
The income transfer out is recorded in the appropriate accounts (6111 or 6611). The portion not yet sent is credited to 6399. Donations and subsidies are voluntary contributions and can therefore not be recorded as balance sheet obligations. 
Account 6399 is used with the global system responsibility center for  “IT contra” only. 
When actual cash is later sent, this account and the “IT contra” responsibility center are debited.
 

6600 Subsidy funding to other CCC

6610 Subsidy transfers to other CCC (6611 global system account): Subsidies sent to other CCC ministries. Subsidies are typically funds where the receiving ministry is not responsible for the fund development or donor relation of the gift. Subsidies may also come from the ministry’s own funds and be sent to other ministries in need. 
6620 Allocation transfers to other CCC: Allocation transferred by the Global office to their ministries. 
This account is usually relevant only for Global/Regional offices.
 

7100 Personnel expenses

7110 Gross salaries: Gross salary expense according to the payroll record, typically the salary reported to the government for tax purposes 
7120 Taxes: Taxes paid on top of the gross salary 
Taxes subtracted from the gross salary are part of the salary total in 7110 and are not recorded separately in this expense account. 
7130 Benefits: Payroll or personnel related benefits that are not part of the gross salary, such as insurance, employer portion of social security, medical benefits etc.
7190 Other personnel expenses: Any other expense related to a person being paid by the ministry or rendering a service on an ongoing basis. 
Note that this account does not include professional services (see 8400) nor expense reports (reimbursements) which should be recorded in accounts that correspond to the types of expenses being reimbursed. 
 

7200 Conferences and meetings

7210 Conferences and events: Costs of organizing or attending a conference or event. These are typically large events than meetings (see account 7220). 
Possible subdivision: 
  • room and board (meals)
  • facilities and equipment (e.g. projectors)
  • attendance fees (participation fees) paid
  • honorariums
  • other conference and event expenses
7220 Meetings and entertainment: Hospitality and meeting related expenses
Subdivision ideas: 
  • meals (meetings)
  • office refreshments (coffee, tea etc. at the office)
  • donor meals or gifts. 
7290 Other conference and meeting expenses: Any other conference or meeting expense that does not fit into the above groups.
 

7300 Media, printing, products (if needed)

These accounts are for products where the purpose is mass distribution or sale. 
7310 Ministry resources (7311 Inventory expense, global system account): Production or purchase of ministry resources for sale or mass distribution.

Account 7311 is the only account in this category that will work with the automated inventory calculation in NetSuite.

7390 Other media, printing and product expenses (if needed): Advertisements for the ministry, media and products. Production or purchase of goods that are not typically considered ministry resources in the traditional sense. Most likely, these would be products related to BAM (Business As Mission). 
 

7500 Travel and transportation

7510 Travel: Expenses for travel, regardless of means or destination 
Subdivision: If desired and needed, you can have subaccounts for flights, car rental, other types of travel. 
7520 Lodging: Cost of housing (accommodation) during travel
7530 Meals and per diem: Cost of meals and incidentals for oneself during travel. Meals for others (meals during meetings) would be recorded under 7220 (meetings and entertainment)
7540 Vehicle operating expenses: The owning and operating of a vehicle, e.g. license fees, insurance, fuel, mileage for use of a personal car 
7550 Vehicle repairs and maintenance: Ministry cost of repairing or maintaining a vehicle, e.g. oil or battery change, repairs 
7590 Other travel expenses: Any travel expense that does not fit into the above travel account groups
 

8100 Supplies and non-capitalized equipment

Note that technology-related expenses have a separate category, 8300.
8110 Office supplies and equipment (non-capitalized): Equipment and supplies for the office, i.e. tools and materials that are typically needed in an office-related function, such as paper, pens, minor equipment. 
Equipment that will be capitalized goes to account category 8600 (Capital expenses). Computer related equipment goes under 8300 (Technology) if not capitalized and under 8600 if capitalized.
8120 Equipment repairs and maintenance: Repairs and maintenance of equipment, whether or not capitalized. This includes maintenance contracts. 
8130 Leasing of equipment: Cost of leasing equipment
8190 Other supplies and equipment expenses: Any equipment and supplies that do not fit in the above groups, including supplies and equipment that are not for office type use. Subscriptions.
 

8200 Communication

8210 Telephone: Telecommunication expenses, including landlines and mobile phones
8220 Postage: Postage and freight costs
8230 Internet expense: Expenses for internet access, either ongoing or during travel
8290 Other communication expenses: Any other communication-related expense
 

8300 Technology

8310 Technology: Expenses for technology and digital supplies and fees
Sub-division possibilities
  • hardware purchases (below the capitalization limit, see account 1740)
  • software (below the capitalization limit)
  • website domains and hosting
  • other technology expenses.
Note account 8450 for technology services. 
 

8400 Professional services

Services of professional providers who are not on payroll of the ministry and instead invoice their services. 
8410 Audit fees (if needed): Fees for external audits
8420 Legal fees (if needed): Lawyer fees or retainers; fees for legal services
8430 Translation costs (if needed): Cost of translators for websites, materials or conferences
8440 Financial services (if needed): Cost of engaging external accounting services for the ministry
8450 Technology services: Costs of engaging software developers or consultants
8490 Other professional services: Any other professional services that do not constitute payroll
 

8600 Capital expenses

Fixed assets are capitalized - recorded as balance sheet items - but they have to also be charged to a responsibility center to show the outflow of funding. This is done by debiting an expense in the responsibility center in charge and crediting the same account but in a “None” responsibility center. The expense accounts offset one another but a source of funding (responsibility center) is charged.
See explanations under account category 1700 as to what constitutes a capital (fixed) asset.
8610 Facility purchase (if needed): The acquisition cost of a building and land, including improvements that will be capitalized.
8630 Furniture purchase: Cost of purchase of furniture. See also subaccount 1730. 
8640 Equipment purchase: Cost of purchase of equipment. See also subaccount 1740. 
8650 Vehicle purchase: Cost of purchase of vehicles. See also subaccount 1750. 
8670 Other capital expenses: Any other fixed (capital) asset related cost, including costs that may not be part of the capitalized amount 
8680 Depreciation expense: Annual depreciation expense. The contra account is 1780.
Optional subdivision: If desired, similar to the Accumulated depreciation account 1780, the depreciation expense account can be divided into subaccounts by the item that is being capitalized (8681 for buildings, 8683 for furniture, 8684 for equipment etc.).
8690 Amortization expense (if needed): This is the equivalent of depreciation expense for an intangible asset. See 1910.
 

8700 Facilities

8710 Rent: Rent expense for the ministry office or another facility where the organization conducts ministry or business on an ongoing basis. This would typically be based on a contract. Rent for staff homes if the ministry policy allows for such reimbursements.
For rent for conference facilities, or events that are not ongoing (regular), use account group 7210 (Conferences and events) instead. 
8720 Utilities: Utilities (electricity, water, air-conditioning/ heat, etc.) for a ministry facility, whether owned or rented, or for staff homes, if the ministry policy allows such expenses to be reimbursed
8730 Facility repairs and maintenance: Repairs and maintenance expenses for a facility owned or rented by the ministry, or for staff homes, if the ministry policy allows such expenses to be reimbursed
Repairs are not capitalized; improvements are (see account group 1720). Improvements add to the value of the property compared with what it was designed to be. For instance, adding a wall can be an improvement (and could be capitalized), painting an existing wall is repairs and maintenance. 
8740 Facility insurance: Insurance for a ministry property, whether owned or rented, or for staff homes, if the ministry policy allows such expenses to be reimbursed
8790 Other facility expenses: Other facility-related expenses, such as cleaning and security
Possible subdivision:
  • property taxes (rates)
  • facility cleaning (including cleaning supplies)
  • security (guard). 
 

8900 Other expenses

8910 Bank fees and interest: Any fees or interest paid on the bank accounts. Credit card fees. 
Possibly needed subdivision: If the ministry has a loan that incurs interest, there should be a separate subaccount for the interest on the loan. 
8920 Miscellaneous taxes (if needed): Tax expenses not related to payroll (see 7120) or properties (see 8790). GST/ VAT. 
8930 Foreign exchange losses (realized) (global system account, 8931,8932): 

8931 is used by the transmittal system to record exchange differences (losses). 

8932 is an account that NetSuite uses during currency revaluation.

Foreign exchange loss from an actual transaction 
See 4920 for realized exchange gains.
8940 Foreign exchange losses (unrealized) 
8941 Unrealized Gain/Loss (global system account)

Unrealized gains and losses resulting from month-end open balance revaluation.

8942 Unrealized Matching Gain/Loss (global system account)

Matching unrealized gains and losses from revenue commitments and funds deposited. This type of gain or loss is shown on the GL Impact subtab of certain foreign currency transactions, such as the bank deposit for a customer payment. NetSuite creates a gain or loss as part of the bank deposit, regardless of the dates of the customer payment and bank deposit.

For more information, see the NetSuite help center article on " Foreign Currency Revaluation"

See 4930 for unrealized exchange gains.
8950 Donations to non-CCC: Donations given to a non-CCC entity
See 6110 for donations to CCC ministries. 
8990 Other fees, losses, and expenses: Any expenses that do not fit into any of the above categories. 
Possible subdivisions:
  • loss on sale of fixed assets (see 4990 for gains)
  • write-offs
  • bad debt expense
  • membership fees
8999 Transmittal expenses (global system account): Any charges passed on to your office - where you are the final office for the charge - on a transmittal will be debited here, with “IT clearing” as the responsibility center. These charges will then need to be journaled out to appropriate expense accounts and segments.
The balance in 8999 should always be zero.
 

9100 Internal income transfers

Account categories 9100 and 9500 together should net to zero. 
9110 Internal donation transfers - received (9111 global system account): Donation transfers received from another responsibility center (staff member or ministry center). 
These amounts would typically count towards the recipient’s support goal. If they should not be counted as support raised, use 9190 instead. 
Accounts 9110 and 9510, when taken together, should net to zero.
9120 Assessments: Assessments charged (debit) or received (credit). The net total of this account in any ministry should be zero. 
9190 Other internal income transfers - received: Other transfers into a responsibility center, such as 
  • subsidies into a staff account
  • funding received from the ministry’s general fund
  • program fees received by charging another responsibility center (usually a staff account). This could also be a separate subaccount to improve the information for the user.
 

9500 Internal expense transfers

Note that transactions such as allocation of rent, or charges for use of office services should not be recorded using internal transfer accounts but rather as a reallocation of the expense. Thus, rent would be distributed by debiting the rent account (8710) in the center charged and crediting the same account in the center that receives the transfer (and thus a reduced expense) and that was charged with the original full expense.
9510 Internal donation transfers - given (9511 global system account): Donation transfers given to another responsibility center (staff member or ministry center). These amounts would typically count towards the recipient’s support goal.
9520 Program charges: Charges for attendance in a ministry project, conference or class. The credit is to another responsibility center in the ministry (in account category 9190). 
9590 Other internal charges: Any other charges that are considered internal transfers.