ACCRUALS AND REALLOCATIONS IN
PERIOND 998
The following information is
intended to help departments
understand some of the accounting
entries they will see on their cost
centers related to accruals and
reallocations processed between
state and local cost centers in
period 998.
Accruals
Finance creates a journal entry in
period 998 to accrue voucher
expenses in the old year (FY09) for
vouchers that posted in the new year
(FY10) between September 1 and 15
where the Goods Receipt Date on the
voucher is before September 1.
Finance then reverses the accrual
entry in period 1 of the new year,
which offsets the voucher processed
by the department. The result is
that the expense is effectively
recorded in the old year. See the
example below.
| FY |
Period
|
Amount |
Description
|
Processed By |
| FY09 |
998 |
100.00 |
Accrue expense on JE
|
Finance |
| |
|
100.00 |
FY09 Subtotal
|
|
| |
|
|
|
|
| FY10 |
1 |
-100.00 |
Reverse accrual on JE
|
Finance |
| FY10 |
1 |
100.00 |
Voucher expense |
Department |
| |
|
0.00 |
FY10 Subtotal
|
|
Reallocations Between State
and Local Cost Centers
Departments submit journals to
General Accounting during period 998
to transfer expenses from state to
local cost centers or visa versa.
Normally, departments must create a
voucher to process reallocations
between state and local cost
centers, but during 998 they are
permitted to submit a journal entry.
Period 998 reallocations between
state and local are just like
accrual entries that must be
reversed in the new year.
(Reallocations involving only local
cost centers or only state cost
centers do not need to be reversed.)
Finance creates a journal entry in
period 1 to reverse the journal
submitted by the department in 998.
Finance also creates a voucher in
period 1 (just like the department
would normally do) to reallocate the
expense between state and local. In
addition, Finance creates a journal
to record the deposit (credit to
expense) when the voucher payment is
issued.
The reversal journal and
voucher/deposit in the new year
offset each other on both the state
and local cost centers, so that the
expense is effectively transferred
between state and local in the old
year based on the department�s
reallocation journal.
The example below is a transfer of
expense from local to state, but the
same principle applies to expense
transfers from state to local.
| FY |
Period |
Fund |
Amount
|
Description |
Processed By |
| FY09 |
998 |
State |
100.00
|
Reallocation JE (local
to state) |
Department |
| |
|
|
|
|
|
| FY09 |
998 |
Local |
-100.00 |
Reallocation JE (local
to state) |
Department |
| |
|
|
|
|
|
| FY10 |
1 |
State |
-100.00 |
Reverse 998 JE |
Finance |
| FY10 |
2 |
State |
100.00
|
Voucher to move expense |
Finance |
| |
|
|
0.0 |
FY10 State Subtotal
|
|
| |
|
|
|
|
|
| FY10 |
1 |
Local |
100.00
|
Reverse 998 JE |
Finance |
| FY10 |
2 |
Local |
-100.00 |
Deposit voucher payment |
Finance |
| |
|
|
0.0 |
FY10 Local Subtotal
|
|
If you have any questions, please
call Mike Glisson at x38706.
|
