Michigan Department of Treasury Uniform Chart of Accounts
Examples of Creating an Account

The following examples illustrate the “three sets of three digits” concept for creating an account.

Example 1

To determine an account number for the purchase of office supplies for the Office of the Treasurer of the local unit. This is accounted for in the General fund. 

Sample Account No.: 101-253-727

• 101: The table of fund numbers indicates that the General fund is 101. Therefore, 101 should be the first three digits.
• 253: Because it is an expenditure, an activity number should be used if applicable. The table of activity numbers indicates that 253 has been assigned for Treasury activities. Therefore, 253 should be the second set of three digits.
• 727: The table of expenditure/expense and other financing use accounts indicates that 726 has been assigned as a supplies sub-control account and 727 through 799 have been assigned as detailed supplies accounts. The local unit chose to assign 727 as the designated Office Supplies account. Therefore, 727 should be the third set of three digits.

Example 2

To account for the payment of salaries to the police in the Police fund.

Sample Account No.: 207-301-703

• 207: The table of fund numbers indicates that the Police fund is 207. Therefore, 207 should be the first set of the three digits.
• 301: Because it is an expenditure, an activity number should be used. The table of activity number indicates that activity number 301 has been assigned for police activities. Therefore, 301 should be the second set of the three digits.
• 703: The table of expenditure/expense and other financing use accounts indicates that 701 has been assigned as a personnel sub-control account and 702 through 725 have been assigned as detailed personnel accounts. The local unit chose to assign 703 as the designated salary account. Therefore, 703 should be the third set of the three digits.

Example 3

 To account for the receipt of revenue as the result of permits issuance in a township. This very small township only provides one type of permit every year:

Sample Account No.: 101-000-475

• 101: Generally, permit fees should be recorded in General fund 101. Therefore, 101 should be the first three digits.
• 000: Because it is a revenue account, an activity number may or may not be used. They chose not to use an activity number. When no activity number is used, “000” should be used as the second set of the three digits.
• 475: Since the township only provides one type of permit, they are satisfied to use the sub-control account for permit fees to record the receipt. The table of revenue account numbers indicates that 475 is the sub-control account for the License and Permits. Therefore, 475 should be the third set of the three digits.

Example 4

 To account for office supplies expenditures for traffic control for police activities in the General fund. The Police Department of the very large local unit needs to track details within the Police Department such as administration, traffic control, road patrol, community policing, etc. They chose to use POINT OFF option to meet their needs.

Sample Account No.: 101-301.10-727

• 101: The table of fund numbers indicates that the General fund is 101. Therefore, 101 should be the first three digits.
• 301.10: Because it is an expenditure, an activity number should be used. The table of activity number indicates that activity number 301 has been assigned for police activities. Therefore, 301 should be the second set of the three digits. However, the local unit has the need of track details for traffic control within the police activities. With the point off option, they chose to use “.10” for traffic control.
• 727: The table of expenditure accounts indicates that 726 has been assigned as a supplies sub-control account and 727 through 799 have been assigned as detailed supplies accounts. The local unit assigned 727 as the designated Office Supplies account. Therefore, 727 should be the third set of three digits.

Example 5

To account for short-term receivables from other funds in the General fund in a large local unit. The local unit has the need to track the details on which funds the General fund lent money to. They chose to use POINT OFF option to track details.

Sample Account No.: 101-000-084.207

• 101: The table of fund numbers indicates that the General fund is 101. Therefore, 101 should be the first three digits.
• 000: The Uniform Chart of Accounts indicates that activity numbers are generally not necessary for balance sheet accounts, although they may be used. Instead, “000” is typically used as the second set of the three digits when no activity number is used.

084.207: The table of balance sheet/statement of net position accounts indicates that 084 has been assigned as Due from Other Funds. Therefore, 084 should be the third set of three digits. However, the local unit needs to track the detailed information on which funds borrowed the money. With the point off option, they chose to use “.207” to indicate that the Police (Sheriff) fund borrowed the funds from the General.