Email Communication Sent February 1, 2023
To: ConnectCarolina administrative users who create purchase requisitions
From: Financial Reporting and Management Services
Effective immediately, due to the implementation of a new accounting standard GASB 96 – Subscription Based IT Arrangements (SBITAs), two new accounts were set up in PeopleSoft:
- Account 527261 – Subscription-based software and
- Account 527262 – Subscription-based infrastructure
To ensure proper usage of these accounts, a new category, “UNC00248 – Subscription-based Software/Infrastructure” was established. Selecting this category will prepopulate the account field with 527261 – Subscription-based software.
If the requisition is for “Subscription based-infrastructure,” the account should be manually changed to 527262.
This new process applies to only new requisitions, users do not need to submit change orders for requisitions already in the system.
For further clarification, traditional license software/infrastructure requires a one-time fee to purchase the software/infrastructure, followed by periodic maintenance costs which cover upgrades and patches. If you stop paying for the maintenance, the product will still work but upgrades and patches will not be installed. By comparison, subscription-based software/infrastructure requires an ongoing fee to be able to access and use the product.
For questions regarding this process, contact:
Financial Reporting and Management Services
T: (919) 962-6923