We must use financial codes to classify and record our financial data to meet various internal, external, and statutory reporting needs – so we can’t avoid them.
However, knowing which financial codes to use and in what combinations can be difficult and, dare we say it, frustrating!
We recognise this, and the finance team have been doing a lot of work behind the scenes to try to simplify what codes we need to use in the system as we start the new financial year.
We have published Finance Coding Overview and Guidance on the Finance Intranet.
Changes are effective from the 1st August 2022 so please use this new coding guidance with immediate effect, e.g. for new purchase requisitions.
Note: finance will make any necessary adjustments to existing Purchase Orders/Requisitions.
The key changes vs current are :
- Most Activity Codes will be removed - they will be replaced with a default code 000ABC. Only necessary activity codes remain.
- Reduced and simplified list of Sources of Funds codes.
- More focus on account codes - these describe what the expenditure/income is. It is important to use the correct one.
Aside from simplification and the removal of redundant coding; these changes will also drive consistency of approach across different areas of LJMU and lay the groundwork for rolling out more accessible standard financial reports via Power BI – a key project which we are working on.
IMPORTANT: this communication supersedes any previous communications and guidance.
Please reach out to your finance manager if there are any questions.