SUBSECTION 5.1.2.2
ILLUSTRATIVE ENTRIES
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SUBSECTION 5.1.2.2 |
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5.1.2.2.1 |
General |
Effective Date: |
June 1, 1998 |
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The following entries illustrate the recording of year-end financial transactions. These entries are for illustrative purposes only and should not be considered all-inclusive. Entries posted to GL Code Series 71XX "In-Process" in treasury and treasury trust accounts also require an entry from the Office of the State Treasurer (OST) as illustrated below to clear the In-Process GL Codes. |
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Dr. |
Cr. |
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In-Process (71XX) |
xxx |
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Current Treasury Cash Activity (OST Only) (4310) |
xxx |
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This entry would be reversed for In-Process debit amounts. |
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5.1.2.2.2 |
Cash Revenues |
Effective Date: |
June 1, 1998 |
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5.1.2.2.2.a |
To record cash revenues earned and received during the fiscal year (between July 1 and June 30) and deposited in the State Treasury (for treasury funds) or a local bank account (for local funds) by June 30. (Refer to Section 5.1.2.1.2.) |
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Dr. |
Cr. |
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Cash in Bank (1110) or Journal Vouchers In-Process (7140) or Receipts In-Process (7110) |
xxx |
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Cash Revenues (3210) (with appropriate revenue source code) |
xxx |
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5.1.2.2.2.b |
To record cash revenues earned and received by June 30 and recorded by the AFRS June cut off, but not deposited/receipted in the State Treasury (for treasury funds) or a local bank account (for local funds) by June 30. |
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Operating Agency - Concluding Fiscal Year: |
Dr. |
Cr. |
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Undeposited Local Cash (1120) or Journal Vouchers In-Process (7140) or Receipts In-Process (7110) |
xxx |
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Cash Revenues (3210) (with appropriate revenue source code) |
xxx |
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Office of the State Treasurer - Ensuing Fiscal Year - For Treasury Funds: |
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Dr. |
Cr. |
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Current Treasury Cash Activity (OST Only) (4310) |
xxx |
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Journal Vouchers In-Process (7140) or Receipts In-Process (7110) |
xxx |
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Operating Agency - Ensuing Fiscal Year - For Local Funds: |
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Cash in Bank (1110) |
xxx |
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Undeposited Local Cash (1120) |
xxx |
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5.1.2.2.3 |
Prior Period Adjustments |
Effective Date: |
June 1, 1998 |
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5.1.2.2.3.a |
To record material prior period adjustments to beginning real account balances (equity). These entries have the effect of adjusting beginning fund balance/equity. Submit these entries to the OFM Accounting Consultant assigned to each agency for approval and entry. Full footnote disclosure is to accompany these adjustments. Note: This example assumes a debit adjustment; the entry would be reversed for a credit adjustment. (Refer to Section 5.1.2.1.3.) |
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Office of Financial Management |
Dr. |
Cr. |
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Account to be Adjusted (XXXX) |
xxx |
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Prior Period Material Corrections (OFM Only) (9220) |
xxx |
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5.1.2.2.3.b |
To record immaterial prior period adjustments. Note: this example assumes a debit adjustment; the entry would be reversed for a credit adjustment. |
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Dr. |
Cr. |
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Account to be adjusted (XXXX) |
xxx |
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Immaterial Adjustments to Prior Periods (3215) Revenue Source Code (0485) Immaterial Prior Period Adjustments |
xxx |
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5.1.2.2.3.c |
To record material prior period adjustments to Account Groups, debit and credit adjustments are offset to GL Code 9910 "Current Period Clearing Account (Account Groups Only)." Note: The balance in GL Code 9910 should be zero. For purposes of this example, assume that an agency discovers that $5.0 million of equipment with associated allowance for depreciation of $4.4 million, remains in the General Fixed Assets Account Group (Account 997) long after the equipment has become obsolete and effectively retired. |
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Office of Financial Management: |
Dr. |
Cr. |
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Allowance of Depreciation (2420) |
4.4M |
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Current Period Clearing Account (Account Groups Only) (9910) |
.6M |
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Furnishings and Equipment (2410) |
5.0M |
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Investment in General Fixed Assets (98XX) |
.6M |
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Current Period Clearing Account (Account Groups Only) (9910) |
.6M |
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5.1.2.2.4 |
Accrued Revenues |
Effective Date: |
June 1, 1998 |
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5.1.2.2.4.a |
To record revenues earned but not received by June 30. (Refer to Section 5.1.2.1.4(a).) |
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Dr. |
Cr. |
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Appropriate Receivable Account (13XX) |
xxx |
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Accrued Revenues (3205) (with appropriate revenue source code) |
xxx |
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5.1.2.2.4.b |
To record receipt of accrued revenues in the ensuing fiscal year and deposited in the State Treasury (for treasury funds) or a local bank account (for local funds). |
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Dr. |
Cr. |
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Cash in Bank (1110) or Receipts in-Process (7110) or Journal Vouchers In-Process (7140) |
xxx |
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Appropriate Receivable Account (13XX) |
xxx |
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Note: For revenue accrued at the end of the first fiscal year of the biennium, this entry is accompanied by a reversal of the accrued revenue- debit GL Code 3205, credit GL Code 3210. |
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5.1.2.2.4.c |
To record a receivable for revenues which meet the asset recognition criteria but do not meet the revenue recognition criteria and are not expected to be collected until after the concluding fiscal year. |
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Dr. |
Cr. |
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Appropriate Receivable Account (13XX) |
xxx |
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Deferred Revenues (5192 ) or (5292) |
xxx |
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5.1.2.2.5 |
Vendor Payment (Warrant/Check) Transactions |
Effective Date: |
June 1, 1998 |
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5.1.2.2.5.a |
To record cash expenditures/expenses for goods and services received and paid for during the fiscal year (July 1 through June 30). (Refer to Section 5.1.2.1.2.) |
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Dr. |
Cr. |
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Cash Expenditures/Expenses (6510) (with appropriate subobject) |
xxx |
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Cash in Bank (1110) or Warrants In-Process (7120) |
xxx |
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5.1.2.2.5.b |
To record the accrual of actual expenditures/expenses for goods and services received by not paid for by June 30. (Refer to Section 5.1.2.1.4(b).) |
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Dr. |
Cr. |
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Accrued Expenditures/Expenses (6505) (appropriate subobject) |
xxx |
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Appropriate Payable Account (51XX) |
xxx |
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5.1.2.2.5.c |
To record payment of accrued expenditures/expenses in the ensuing fiscal year. Note: This entry is system generated for AFRS agencies using warrant-producing transaction codes. |
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Dr. |
Cr. |
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Appropriate Payable Account (51XX) |
xxx |
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Cash in Bank (1110) or Warrants In-Process (7120) |
xxx |
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Note: For expenditures charged to biennial appropriations accrued at the end of the first fiscal year of the biennium, this entry is accompanied by a reversal of the accrued expenditure - debit GL Code 6510, credit GL Code 6505. |
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5.1.2.2.5.d |
To record the accrual of estimated expenditures/expenses for goods and services received but not paid for by June 30. Usually the invoice has not been received by July 31. Estimated expenditures/expenses may also be items for which you anticipate an invoice amount based upon expenditure trend information, such as regular quarterly invoices. The final entry in this example shows how to reverse an unliquidated estimated accrual that is not expected to be liquidated. (For continuing appropriations, estimated accruals are recorded in GL Code 6505.) Concluding Fiscal year at Appropriation End: |
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Dr. |
Cr. |
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Estimated Accrued Expenditures/Expenses (6560) (appropriate subobject) |
xxx |
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Appropriate Payable Account (51XX) |
xxx |
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Ensuing Fiscal Year |
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Appropriate Payable Account (51XX) |
xxx |
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Cash in Bank (1110) or Warrants In-Process (7120) |
xxx |
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Appropriate Payable Account (51XX) |
xxx |
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Immaterial Adjustments to Prior Periods (3215) Revenue Source Code (0716) Recoveries of Prior Appropriation Expenditures |
xxx |
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5.1.2.2.6 |
Encumbrance Transactions |
Effective Date: |
June 1, 1998 |
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5.1.2.2.6.a |
To record encumbrances for budgeted funds during the fiscal year. (Refer to Section 5.1.2.1.4(b).) |
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Dr. |
Cr. |
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Encumbrances (6410) |
xxx |
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Reserved for Encumbrances (9510) |
xxx |
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5.1.2.2.6.b |
To record liquidations of encumbrances for budgeted funds when paid or accrued. |
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Dr. |
Cr. |
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Reserved for Encumbrances (9510) |
xxx |
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Encumbrances (6410) |
xxx |
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5.1.2.2.6.c |
To record the end of biennium capital appropriation encumbrances for projects that have been reappropriated in the ensuing biennium. |
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Concluding Fiscal Year at Biennium End: |
Dr. |
Cr. |
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Encumbrances for Reappropriated Capital Appropriations (9513) |
xxx |
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Encumbrances (6410) |
xxx |
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Ensuing Fiscal Year: |
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Encumbrances (6410) |
xxx |
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Encumbrances for Reappropriated Capital Appropriations (9513) |
xxx |
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5.1.2.2.7 |
Interagency Reimbursements (Object S) |
Effective Date: |
June 1, 1998 |
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5.1.2.2.7.a |
To record an intraagency reimbursement received by a budgeted proprietary fund for salaries and benefits during the fiscal year. (Refer to Section 5.1.2.1.5(b)(8).) |
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Dr. |
Cr. |
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Cash in Bank (1110) or Receipts In-Process (7110) or Journal Vouchers In-Process (7140) |
xxx |
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Cash Expenditures/Expenses (6510) Subobject SA (Salaries) |
xxx |
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Cash Expenditures/Expenses (6510) Subobject SB (Benefits) |
xxx |
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Expense Adjustments/Eliminations (GAAP) (6525) Subobject SA (Salaries) |
xxx |
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Expense Adjustments/Eliminations (GAAP) (6525) Subobject SB (Benefits) |
xxx |
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Revenue Adjustments/Eliminations (GAAP) (3225) Revenue Source Code (0420) Charges for Services |
xxx |
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5.1.2.2.7.b |
To record an interagency reimbursement received by a non budgeted proprietary fund during the fiscal year. |
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Dr. |
Cr. |
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Cash in Bank (1110) or Receipts In-Process (7110) or Journal Vouchers In-Process (7140) |
xxx |
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Cash Revenues (3210) Revenue Source Code (0420) Charges for Services |
xxx |
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5.1.2.2.7.c |
To record an interagency reimbursement received by funds other than proprietary funds for salaries and benefits during the fiscal year. |
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Dr. |
Cr. |
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Cash in Bank (1110) or Receipts In-Process (7110) or Journal Vouchers In-Process (7140) |
xxx |
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Cash Expenditures/Expenses (6510) Subobject SA (Salaries) |
xxx |
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Cash Expenditures/Expenses (6510) SB (Benefits) |
xxx |
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5.1.2.2.8 |
Intra-Agency Reimbursements (Object T) |
Effective Date: |
June 1, 1998 |
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5.1.2.2.8.a |
To record an intra-agency reimbursement received by a budgeted proprietary fund for salaries and benefits during the fiscal year. (Refer to Section 5.1.2.1.5(b)(9).) |
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Dr. |
Cr. |
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Cash in Bank (1110) or Receipts In-Process (7110) or Journal Vouchers In-Process (7140) |
xxx |
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Cash Expenditures/Expenses (6510) Subobject TA (Salaries) |
xxx |
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Cash Expenditures/Expenses (6510) Subobject TB (Benefits) |
xxx |
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Expense Adjustments/Eliminations (GAAP) (6525) Subobject TA (Salaries) |
xxx |
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Expense Adjustments/Eliminations (GAAP) (6525) Subobject TB (Benefits) |
xxx |
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Revenue Adjustments/Eliminations (GAAP) (3225) Revenue Source Code (0420) Charges for Services |
xxx |
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5.1.2.2.8.b |
To record an intra-agency reimbursement received by a proprietary fund during the fiscal year. |
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Dr. |
Cr. |
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Cash in Bank (1110) or Receipts In-Process (7110) or Journal Vouchers In-Process (7140) |
xxx |
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Cash Revenues (3210) Revenue Source Code (0420) Charges for Services |
xxx |
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5.1.2.2.8.c |
To record an intra-agency reimbursement received by funds other than proprietary funds for salaries and benefits during the fiscal year. |
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Dr. |
Cr. |
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Cash in Bank (1110) or Receipts In-Process (7110) or Journal Vouchers In-Process (7140) |
xxx |
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Cash Expenditures/Expenses (6510) Subobject TA (Salaries) |
xxx |
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Cash Expenditures/Expenses (6510) Subobject TB (Benefits) |
xxx |
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