Year-End Accruals & Deferrals
1.0 PURPOSE
The purpose of this procedure is to provide guidance on recording prepaid expenses transactions.
2.0 SCOPE
The scope of this document is to serve as desk procedure for transaction processing staff.
3.0 DEFINITIONS
Prepaid Expenses are recognized when a payment is made in one fiscal period but benefits and expenses apply to future periods. This payment is recorded as an asset in the current period and expensed in future periods.
4.0 PROCEDURES
When a payment is determined as Prepaid Expenses the following transactions shall be made:
Current Fiscal Year:
| To record Payment: | |
|---|---|
| Debit | Credit |
| General Ledger (6-digit) + 1632 object Code | Same General Ledger (6-digit) + 2100 object code |
| To record Voucher and Cut Check | |
|---|---|
| Debit | Credit |
| General Ledger (6-digit) + 2100 | Local Bank |
Following Fiscal Year:
| To record expenditure: | |
|---|---|
| Debit | Credit |
| Subsidiary Ledger (SL) (6-digit) + appropriate SL object code, example 4111 (travel) | General Ledger (6-digit)+1632 object Code |
| To record Receipt of Reimbursement from State | |
|---|---|
| Debit | Credit |
| Local Bank | Appropriation Bank |
Last Updated: August 8, 2012