A Class is a value that identifies the functional nature of an expense (e.g. instruction, research, scholarship). All expenditures require the use of a Class. Transfers require a Class except intrafund transfers within the General Fund.

For additional information on Class, including a complete list and definition of all Class values, please review the Class Code Definitions by downloading the PDF version or by following the link.

Use of the Class chartfield is mandatory. The Class chartfield is used to denote the functional nature of an expense, which is essential for external and internal financial reporting including:

  • Enterprise-wide external financial reporting such as
    • Audited financial statements
    • Facilities and administrative cost proposal for federal sponsored programs
    • State of Michigan reporting
    • Various surveys
  • Management and departmental reporting

To maintain the integrity of the University of Michigan financial records, it is imperative that Class be used appropriately and consistently among like transactions. This section of the website provides information about utilizing the Class portion of the ChartField appropriately for all expenditures. Please direct questions on Class use to the Cost Reimbursement Office at (734) 764-6243.

Indirect Cost Recovery Excluded (ICRX) Expenditures

Costs classified as indirect cost recovery excluded (ICRX) by the federal government must be specifically identified by using the appropriate Class ending with "X". The most frequently used categories of ICRX costs are:

  • Alumni activities
  • Entertainment
  • Fund raising
  • Hosting (when considered "entertainment")
  • Lobbying
  • Public relations

Refer to the Policy on Indirect Cost Recovery Excluded (ICRX) Expenditures for a detailed discussion of ICRX expenditures, and how to treat them for accounting purposes.