AKSAS Handy Guide - Revenues by wls73800

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									                                                                           AGENCY RECEIPT TRANSACTIONS

                                                                                                                  FISCAL   SET-UP
 TRANSACTION                                                                             CURRENT         TRANS    PERIOD   YEAR
       TYPE                                 DESCRIPTION                                 TIME PERIOD      CODE     CODE     FOR CC                              NOTES

UNRESTRICTED         Unrestricted receipts are received by the agency and deposited       July - June    210-xx     C      Current
RECEIPT              in the bank during the current fiscal year.

                     Unrestricted receipts are received by the agency and deposited      July - August   210-xx     P       Prior
                     in the bank on or before June 30, but the transaction is NOT
                     RECORDED in AKSAS until July 1 or later.

                     Unrestricted receipts are received by the agency on or before       July - August   210-xx     C      Current    In addition, material amounts should be reported as Monies
                     June 30, but the receipts are NOT DEPOSITED in the bank                                                          in Transit in the prior year.
                     and the transaction is NOT RECORDED in AKSAS until
                     July 1 or later.                                                                                                 Refer to Monies in Transit in this Guide for more
                                                                                                                                      information.

RESTRICTED RECEIPT   Restricted receipts are received by the agency for a current         July - June    210-xx     C      Current    An open item type, number, and line number can be
                     fiscal year appropriation.                                                                                       referenced instead of using a set-up year, CC, and account.
                                                                                                                                      The open item type should be EN (Encumbered Revenue) or
                                                                                                                                      RC (Accounts Receivable).

                     Restricted receipts are received by the agency and deposited in     July - August   210-xx     P      Prior or
                     the bank on or before June 30, but the transaction is NOT                                             Earlier
                     RECORDED in AKSAS until July 1 or later.

                     Restricted receipts are received by the agency on or before June    July - August   210-xx     C      Prior or   In addition, material amounts should be reported as Monies
                     30, but the receipts are NOT DEPOSITED in the bank and the                                            Earlier    in Transit in the prior year. These amounts should be
                     transaction is NOT RECORDED in AKSAS until July 1 or                                                             excluded from year-end accounts receivable accruals.
                     later.
                                                                                                                                      Refer to Monies in Transit in this Guide for more
                                                                                                                                      information.

                     Restricted receipts are received by the agency for a prior year      July - June    210-xx     C      Prior or   An open item type, number, and line number may be
                     appropriation.                                                                                        Earlier    referenced instead of using a set-up year, CC, and account.
                                                                                                                                      The open item type should be EN (Encumbered Revenue) or
                                                                                                                                      RC (Accounts Receivable).




4/30/98 (Revised 06/30/10)                                                              AKSAS HANDY GUIDE                                               Revenues                          Page 16
                                                                              AGENCY RECEIPT TRANSACTIONS

                                                                                                                  FISCAL        SET-UP
 TRANSACTION                                                                            CURRENT         TRANS     PERIOD         YEAR
      TYPE                                 DESCRIPTION                                 TIME PERIOD      CODE       CODE         FOR CC                                  NOTES

ABATEMENT            Do not increase an encumbered expenditure open item with an abatement agency receipt. Unpredictable results will occur.

                     Record a refund for a current fiscal year expenditure.              July - June    210-xx        C          Current       The original expenditure account used to record the
                                                                                                                                               expenditure is used to record the refund.

                     Record a refund for a prior year expenditure received July 1 or    July - August   210-xx        C          Prior or      This transaction is recorded as a prior year recovery
                     later. The amount of the refund is IMMATERIAL as related to                                                 Earlier       (RU account 66190). For appropriations receiving federal or
                     the appropriation expenditures.                                                                                           other receipts earned under a recovery program, use RR
                                                                                                                                               account 59510.

                     Record a refund for a prior year expenditure received July 1 or    July - August   130-10       n/a           n/a         The reduction of expenditure is recorded in an Accounts
                     later. The amount of the refund is MATERIAL as related to                                                                 Receivable (RC) open item established for the prior year
                     the appropriation expenditures. The 210-xx transaction is                                                                 (fiscal period code = P). Refer to Accounts Receivable
                     recorded after the 130-10 RC open item is established.                             430-25        P          Prior or      Transactions in this Guide for more information.
                     Requires three transactions.                                                                                Earlier

                                                                                                        210-xx        C         From RC

                     Record a refund for a prior year expenditure received July 1 or    July - August   210-xx        C           Prior        The 210-xx transaction uses an agency CC and an
                     later. The amount of the refund is MATERIAL as related to                                                                 expenditure account.
                     the appropriation expenditures. The 210-xx transaction is                          130-10       n/a           n/a
                     recorded before the 130-10 RC open item is established.                                                                   The 430-25 transaction with fiscal period code = P records
                     Requires four transactions.                                                        430-25        P           Prior        the receivable in the prior year. The 430-25 transaction with
                                                                                                                                               fiscal period code = C reverses the prior year 430-25
                                                                                                        430-25        C           Prior        transaction and realizes the receivable in the current year.

                     Record a refund for a prior year expenditure received               Sept - June    210-xx        C          Prior or      This transaction is recorded as a prior year recovery
                     September 1 or later.                                                                                       Earlier       (RU account 66190). For appropriations receiving federal or
                                                                                                                                               other receipts earned under a recovery program, use RR
                                                                                                                                               account 59510.




4/30/98 (Revised 06/30/10)                                                             AKSAS HANDY GUIDE                                                         Revenues                            Page 17
                                                           ACCOUNTS RECEIVABLE TRANSACTIONS




DEFINITION                                                                                 ACCOUNTS
Accounts receivable are defined as revenue earned, but not yet received. “Earned” is       Groups of revenue accounts are related to specific accounts receivable asset accounts.
defined as that portion of a program for which the state has performed the service.        The accounts receivable account used must be the one for the revenue group within
Specifically, an account receivable is                                                     which the revenue account falls. For example, using the table below, if the restricted
                                                                                           revenue account is 55050 (a lower level of 54005), the asset account must be 10106.
    Restricted revenue earned from a contract or agreement, but not yet received.
    Federal or program receipts earned under a recovery program, but not yet received.     Use the following accounts receivable asset accounts with the corresponding revenue
    Unrestricted revenue earned and billed, but not yet received.                          accounts:

                                                                                               ASSET              REVENUE GROUP                  ASSET DESCRIPTION
ACCOUNTS RECEIVABLE & RSAs
Accounts receivable are not recorded for RSAs (Reimbursable Service Agreements)                10105           57002 & lower levels         Federal Grants-in-Aid
unless the RSA is with an outside entity that is not on AKSAS, such as the University of
Alaska, the Alaska Housing Finance Corporation, or the Alaska Industrial Development           10106           54005 & lower levels         Program Receipts
and Export Authority. This type of accounts receivable is recorded as an interfund
receivable from the appropriate fund with the revenue account reflecting the revenue           10108           59500 & lower levels         Other Restricted Revenue
transferred in from that fund. If an account does not currently exist, contact your
Division of Finance accountant to request that one be established.                            10200 &          59900 & lower levels         Interfund Receivables
                                                                                            lower levels
Note for year-end accruals: An account receivable must be recorded to properly accrue
all revenues received after June 30th related to prior year expenditures.                      10115           60012 & lower levels         Unrestricted Revenues
                                                                                                               70000 & lower levels         Abatements*

                                                                                            * Refer to Agency Receipt Transactions, Abatement.




   4/30/98 (Revised 06/30/10)                                                   AKSAS HANDY GUIDE                                           Revenues                    Page 18
                                                                         ACCOUNTS RECEIVABLE TRANSACTIONS

                                                                                                       FISCAL        SET-UP
                                                                            TIME         TRANS         PERIOD         YEAR
  TRANSACTION                        DESCRIPTION                          PERIOD          CODE          CODE         FOR CC             DEBIT                CREDIT                          NOTES
       TYPE

ADD ACCOUNTS            Establish an accounts receivable (RC) open        July - June     130-10          n/a           n/a                n/a                  n/a           An accounts receivable open item shell
RECEIVABLE (RC) OPEN    item shell.                                                                                                                                           contains no financial lines.
ITEM

RECORD FINANCIAL DATA   Record financial data in an RC open item          July - June     430-25           C         Current or       Agency CC            Agency CC          When “agency CC” is specified for the
IN AN RC OPEN ITEM      for revenue earned in the current fiscal year.                                                 Prior         Asset Account       Revenue Account      financial coding, use the collocation
                                                                                                                                     RC Open Item                             code that points to the correct
                                                                                                                                                                              appropriation.

                        Record financial data in an RC open item         July - August    430-25           P            Prior         Agency CC            Agency CC          All accounts receivable for the prior
                        for revenue earned in the prior fiscal year.                                                                 Asset Account       Revenue Account      year must be recorded by August 31.
                                                                                                                                     RC Open Item
                                                                                                                                                                              When “agency CC” is specified for the
                                                                                                                                                                              financial coding, use the collocation
                                                                                                                                                                              code that points to the correct
                                                                                                                                                                              appropriation.

                        Record an abatement received in the current      July - August   Refer to Agency Receipt Transactions in this Guide for detailed information on how to record abatements.
                        fiscal year for a prior year expenditure. The
                        amount of the refund is MATERIAL as
                        related to the appropriation expenditures.

RECORD CASH RECEIVED    Cash received after the RC open item has          July - June     210-11           C            n/a                n/a           RC Line Number
                        been established.

                        Cash received for revenue earned in the          July - August    210-11           C            Prior              n/a              Agency CC         The 430-25 transaction with fiscal
                        prior year before the prior year RC open                                                                                             Revenue          period code = P records the receivable
                        item is recorded. Requires four                                                                                                                       in the prior year. The 430-25
                        transactions.                                                     130-10          n/a           n/a                n/a                  n/a           transaction with fiscal period code = C
                                                                                                                                                                              reverses the prior year 430-25
                                                                                          430-25           P            Prior         Agency CC            Agency CC          transaction and realizes the receivable
                                                                                                                                     Asset Account       Revenue Account      in the current year.
                                                                                                                                     RC Open Item

                                                                                          430-25           C            Prior        Agency CC           RC Line Number
                                                                                                                                   Revenue Account




4/30/98 (Revised 06/30/10)                                                                AKSAS HANDY GUIDE                                                                 Revenues                          Page      19
                                                                      ACCOUNTS RECEIVABLE TRANSACTIONS

                                                                                               FISCAL   SET-UP
                                                                         TIME         TRANS    PERIOD   YEAR
  TRANSACTION                      DESCRIPTION                         PERIOD         CODE     CODE     FOR CC      DEBIT            CREDIT                    NOTES
       TYPE

RECORD CASH RECEIVED   Cash received for revenue earned in the        July - August   130-10     n/a      n/a          n/a              n/a
(CONTINUED)            prior year after the prior year RC open item
                       is recorded. Requires three transactions.                      430-25     P       Prior     Agency CC        Agency CC
                                                                                                                  Asset Account   Revenue Account
                                                                                                                  RC Open Item

                                                                                      210-11     C      From RC        n/a        RC Line Number




4/30/98 (Revised 06/30/10)                                                            AKSAS HANDY GUIDE                                             Revenues           Page   20
                                                               DEFERRED REVENUE TRANSACTIONS



DEFINITION                                                                                 PROCEDURES
Deferred revenues are defined as:                                                          Two AJEs are necessary for deferring revenues. The first AJE is recorded in the prior
                                                                                           COA year, debits the appropriate revenue account and credits a liability account under
1.   Unearned Revenue - Revenues collected, but not yet earned by 6/30. “Earned” is        22510 (either 22511 “unearned income,” or one of the more specific liability account
     defined as that portion of a program for which the state has performed the service.   codes if appropriate).
     Specific examples of unearned revenues are:
                                                                                           The second AJE is recorded early in the subsequent COA year, debits the same liability
              Revenue collected in advance of performing a service under a contract or     account and the prior set-up year, and credits the appropriate revenue coding in the
              agreement.                                                                   subsequent COA year.
              Federal or program receipts that are advanced to the state, but earned as
              expenditures are made.                                                       The overall impact is a reduction of revenues in the prior year and a corresponding
              Federal or program receipts collected under a reimbursable program, based    increase in the subsequent year. Two AJEs are needed because transactions must occur
              on expenditures, which were subsequently abated or moved to another          in both COA years.
              funding source.

2.   Unavailable Revenue –Revenues recorded (e.g., accounts receivable), that are not
     collected by 8/31. This is only applicable to governmental funds because they use
     the modified accrual method. Specific examples of unavailable revenues are:

              Revenues expected to be collected after 8/31 for expenditures in the prior
              year.
              Revenue reimbursements in a multi-year appeal with the federal
              government, which management expects to collect.

Reference: GAAFR, Using GASB 34 Model, 2005 – pages 268-269




4/30/98 (Revised 06/30/10)                                                    AKSAS HANDY GUIDE                                                  Revenues                  Page 21
                                                                 DEFERRED REVENUE TRANSACTIONS

                                                                                         FISCAL   SET-UP
                                                                   TIME         TRANS    PERIOD    YEAR
  TRANSACTION                     DESCRIPTION                    PERIOD         CODE     CODE     FOR CC           DEBIT              CREDIT               NOTES
       TYPE

PRIOR YEAR DEFERRAL   Reduces unearned revenues in prior year   July - August   430-11     P        Prior        Agency CC            Agency CC
                      and records deferred revenue liability.                                                  Revenue Account     Liability Account
                                                                                                                                    22511 or more
                                                                                                                                   specific account
                                                                                                                                     under 22510

SUBSEQUENT YEAR       Reverses deferred revenue liability and    Any time       430-11     C      Prior for       Agency CC        Agency CC
REVERSAL              records revenue in subsequent year.       after July 1.                     liability    Liability Account   Revenue Account
                                                                                                  Current or    22511 or more
                                                                                                   prior for   specific account
                                                                                                   revenue       under 22510




4/30/98 (Revised 06/30/10)                                                      AKSAS HANDY GUIDE                                                      Revenues    Page 22
                                                                MONIES IN TRANSIT TRANSACTIONS



DEFINITION                                                                                  PROCEDURES
Monies in transit is defined as cash in hand as of June 30, but not deposited in either a   Two AJEs are necessary for recording monies in transit. The first AJE is recorded in the
bank account or the State Treasury until after June 30. If an agency has material           prior COA year, debits asset account 10070 – Monies in Transit, and credits the
undeposited receipts on June 30, an entry to record monies in transit should be made in     appropriate revenue account, or in the case of an abatement, the appropriate expenditure
AKSAS. Thresholds for materiality differ depending on the fund and type of receipts.        account.
Undeposited receipts within a single location or program exceeding $25,000 should be
evaluated for materiality.                                                                  The second AJE is recorded in the subsequent COA year, credits the same asset account
                                                                                            and the prior set-up year, and debits the appropriate revenue or expenditure account.

                                                                                            The overall impact is recording the cash and the receipts in the prior year and a
                                                                                            corresponding decrease in the subsequent year, which offsets the actual recording of the
                                                                                            receipts in the current year. Refer to Agency Receipt Transactions in this Guide for more
                                                                                            information. Two AJEs are needed because transactions must occur in both COA years.




4/30/98 (Revised 06/30/10)                                                    AKSAS HANDY GUIDE                                                   Revenues                  Page 23
                                                                     MONIES IN TRANSIT TRANSACTIONS

                                                                                             FISCAL   SET-UP
                                                                       TIME         TRANS    PERIOD    YEAR
  TRANSACTION                    DESCRIPTION                         PERIOD         CODE     CODE     FOR CC          DEBIT             CREDIT                        NOTES
       TYPE

RECORD MONIES IN     Record monies in transit for cash in hand as   July - August   430-11     P        Prior       Agency CC          Agency CC       Refer to Agency Receipt Transactions
TRANSIT              of June 30 in the prior year and record                                                       Account 10070     Revenue Account   in this Guide for more information. If
                     revenues earned in the prior year.                                                                                                the cash in transit is a receipt for an
                                                                                                                                                       abatement, the credit entry would be
                                                                                                                                                       recorded to the appropriate expenditure
                                                                                                                                                       account.

SUBSEQUENT YEAR      Reverses monies in transit and revenues         Any time       430-11     C      Prior for      Agency CC         Agency CC       Reverses the prior year entry. Refer to
REVERSAL             earned in the prior year.                      after July 1.                      assets      Revenue Account    Account 10070    Agency Receipt Transactions in this
                                                                                                      Current or                                       Guide for more information on posting
                                                                                                       prior for                                       of receipts in the current year.
                                                                                                       revenue




4/30/98 (Revised 06/30/10)                                                          AKSAS HANDY GUIDE                                                          Revenues                          Page 24

								
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