​​​Finance Module​

Luma Chart of Accounts

The State of Idaho, in preparation for the implementation of its next-generation ERP system (Luma) has chosen to redesign its Chart of Accounts (COA).

The Chart of Accounts is a framework to classify and organize State and agency information. This will include financial transactions as well as non-financial data such as project details and performance metrics. The Chart of Accounts captures information at a meaningful level of detail to assist agencies in managing resources.

Redesigning Idaho's Chart of Accounts is one of the most strategically important actions the State will take in preparing the groundwork for Luma. The redesign of the Chart of Accounts will be based on leading practices in government and business. In addition, the new Chart of Accounts will be designed in advance of the implementation of Luma to help ensure that it, first and foremost, serves Idaho's strategic purposes. Beginning the redesign of the COA before the implementation of the Luma system will help to make sure the implementation is completed in a timely manner.

Idaho's Chart of Accounts redesign project seeks to:

  • Emphasize simplicity, expandability, and flexibility for the life of the system.
  • Manage operations and provide services to its citizens.
  • Deliver a wide variety of financial and non-financial reporting.
  • Capture financial data at a meaningful level of detail to assist agencies in managing financial resources.
  • Meet the needs of both the State's central control and operating agencies. 

The Luma Finance team took a multifaceted approach to the Chart of Accounts redesign. Tackling this task from several directions ensured that the Luma Finance team considered not just the State financial reporting impact of the new Chart of A design but also factored in budgetary needs, external/third-party reporting and oversight, end-user and operational considerations, cash management controls, Idaho state statutes, and change impacts. The methodology employed included high-level, policy-focused discussions as well as practical operational exercises.​

​​​Initial Chart of Accounts Dimensions

COA Graphic 2png.PNG

Updated Chart of Accounts Dimensions


11111.PNG






Sample Chart of Accounts String

COA Sample String.PNG

STARS Hierarchy Structure Mapped to Luma Hierarchy Structure​

​The Luma Account Dimension Structure will hold a combination of STARS GL accounts, subobjects, and a selection of subsidiary accounts. Luma Account numbers will be a 6-digit integer.


Luma Fund Number Updates​

Luma Fund numbers will drop the leading zero and will be a 5-digit integer primarily made up of the STARS fund number (minus the leading zero) and the STARS fund detail number. (See second graphic below). The leading zero was dropped from the Luma fund numbers to avoid issues when analyzing data in spreadsheets.



Background Information

Infor Financials 

Infor Financials will help improve business transparency and strengthen financial discipline with proven functionality covering core financial management, budgetary control, project and grant accounting, and cash management. As part of the Infor Financials foundation, we deliver a flexible, configurable chart of account structure to accommodate our customers’ needs. Infor provides the ability to define multiple hierarchical rollups for each COA element. We define which hierarchy is used for processing (i.e. budgetary control) and can define as many others as needed for internal, external, and regulatory needs.

Infor Financials delivers a variety of online reports and inquiry views for users to have immediate visibility into important information, such as budgetary control and expenditure analysis. For CAFR production, we offer Infor Business Intelligence (BI) infrastructure to produce necessary reports. Infor BI is fully integrated with the financials foundation and recognizes solution configuration, including COA elements and data values, hierarchies, and reporting bases. Infor Global Ledger has a unique concept called reporting basis that will​ expedite the ability to easily produce various CAFR and other regulatory reports.
 
Infor Global Ledger
Global Ledger serves as the foundation for the State’s financial activities; it is where organizations design and establish their Chart of Accounts structure and values within the financial management applications. In addition to serving as the accounting foundation, Global Ledger also helps the State to easily capture, analyze, and report
transactional information. Global Ledger works tightly with all Infor business management applications so you can transfer data securely among applications and to anyone who needs to know. Global Ledger supports unlimited financial calendars that allow you to accommodate different fiscal year ends and other reporting requirements. Unlimited ledgers and basis reporting allow you to deliver financial information for regional regulatory requirements, management reporting requirements, consolidations, or other reporting needs. And unlimited dimension strings allow you to customize the information you track and report on for your organization, including non-financial data.

Global Ledger delivers a flexible, configurable chart of account structure to accommodate our customers’ needs. As delivered, there are four primary structural elements: Entity/Fund, Account, Accounting Unit, and Project. We, then, provide 10 additional user-defined structural elements that customers can activate and use as needed. For all elements, customers can adjust the display labels, display order, and define if each element is required for entry. Global Ledger serves as the budgetary control center of the financial management suite, encompassing both actual and encumbrance entries, making the relationship between the two transparent and synchronized. Once
budgets are approved within Sherpa, they are integrated into Global Ledger where budgetary control rules are defined. These controls create and manage budgetary impact for sub-module transactions such as requisitions and purchase orders. Pre-encumbrances or encumbrances automatically liquidate upon settlement of a subsequent
transaction.

Close Management delivers tools you need to reduce time worked, errors, risks, and costs by eliminating cumbersome, inefficient, and untrustworthy manual processes. With the solution’s automated workflows and consolidation processes, you’ll be able to execute the closing process more quickly, giving you more time to focus on strategy and analysis. 

Project Ledger
Project Ledger is a comprehensive project accounting module with robust billing and revenue management capabilities. Project Ledger is engineered to accommodate the complex and often conflicting requirements of your users. By tracking the accounting aspect of projects (e.g. “non-GL”) in a separate ledger, information becomes
readily accessible to both Project Managers and internal accountants whenever and wherever they need it. From tracking daily project activity to grantor billing, Project Ledger transforms your organization so you can effectively manage the accounting of your projects — from inception to completion. Combined with Grant Accounting, it
provides you a means for a complete, end-to-end project or program accounting.
 
Within Project Ledger, users can:
  • Define alternate reporting calendars, which may differ from the standard fiscal calendar
  • Define roles and assign resources to those roles
  • Perform cost allocations for costs that are shared across projects
  • Define Periods of Performance for acceptable date ranges for requisitions, purchase order, invoices, and so on, with different dates for each type of transaction
  • Review and manage project costs and funding
​​Project Ledger also acts as the information bridge between the needs of the field accounting and central financial accounting functions. It provides a centralized repository for maintaining and analyzing information related to individual projects, whether the end product is a fixed asset, a service deliverable or a strategic review of your internal operations. It allows your organization to manage the life cycle of programs, capital investment, and internal projects. Project Accounting was created specifically to address
the unique requirements of project-centric organizations. You gain comprehensive functionality, automation, and integration with this system. Your managers can view immediate project costing status to respond quickly when financial or operational issues arise.

Grant Accounting
Grant Accounting enables you to optimize the business side of your grant-funded programs by helping to reduce costs, automate system-wide grant processes, eliminate redundant systems and tasks, deliver real-time role-based information and help ensure regulatory compliance. In light of increasing regulatory and financial pressures,
organizations often struggle with a number of critical issues, such as tracking and controlling grant-funded expenditures, handling effort reporting, billing and collecting from grantors, and understanding the financial aspects of grant-related activities. Grant Accounting is helping organizations to manage their programs more strategically, reduce their risks, and become better stewards of their grant resources. 

Grant Accounting is tightly coupled with Infor Project Ledger. Programs or projects defined in Project Ledger are linked to grants using a one-to-one, one-to-many, many-to-one, or many-to-many relationship. This allows grant-relateexpenditures to be tracked by project or program, grant, grantor, CFDA number, ARRA classification, or
user-defined funding source. Grant Accounting allows the State to track funding down to the transaction level, without having to key in one or more funding sources for each transaction. This arrangement allows for maximum transparency and efficiency. Grant Accounting is grantee-based; grantor functions, including pass-through and
sub-recipients, can be managed using the Project Ledger and procurement areas of Infor CloudSuite.

Payables and Matching
Infor Payables & Matching gives you comprehensive payables functionality, including vendor maintenance, invoice processing, payment processing, and regulatory reporting and compliance. You get real-time visibility into vendor invoices and approval processes to better monitor and escalate the payables process. From routine operations to
exception handling and accounting, you’ll be able to automate and streamline labor-intensive processes to reduce costs.
 
Infor Payables supports the ability to manage a shared vendor master across the various State agencies. Within a single vendor, the State can track all vendor addresses (solicitation, order, remittance) and locations, each with their own contacts, invoicing defaults, and location balances without taking up extra space or having to create
additional vendors within the vendor master file. Additionally, Infor Payables supports parent-child relationships for vendors with separate FEIN numbers, but a share a corporate relationship.

Cash Management
Infor Cash Management is a single solution with comprehensive cash management capabilities that can help improve your bank reconciliation processing and strengthen your banking relationship. This solution allows you to monitor cash positions, create cash forecasts, and validate actual transactions against forecasts. It also offers a rules-based setup, with interfaces to Global Ledger, creating a flexible system that supports a variety of techniques for managing and automating bank reconciliation, along with multiple short- and long-term cash forecasting methods.​