1 / 9

ACCRUAL PROCESS

ACCRUAL PROCESS. Updated 9/13/2010. ACCRUALS. Definition: Expense Accrual: A month-end journal entry (either system generated or manual) that accounts for goods or services that were received in a given month but the invoice was not posted by month end

kira
Télécharger la présentation

ACCRUAL PROCESS

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. ACCRUAL PROCESS Updated 9/13/2010

  2. ACCRUALS • Definition: • Expense Accrual: • A month-end journal entry (either system generated or manual) that accounts for goods or services that were received in a given month but the invoice was not posted by month end • Purpose: To allow monthly expense reports to accurately report actual medical center expenses in the event there are invoicing inconsistencies or delays. • Revenue Accrual: • Establishment of a collectible receivable • A month end manual journal entry to report revenue that was generated in a given month when the corresponding cash payment was not received by month end. • Purpose: To allow monthly revenue reports to accurately report actual medical center revenue in the event there are delays in receipt or posting of cash.

  3. What Causes an Expense Accrual? • Two triggers for expense accruals: • A good or service is purchased and received, but invoice has not been processed/matched to purchase order in the system by month end • A good or service is invoiced infrequently or inconsistently, and needs to be expensed over multiple periods of a fiscal year

  4. Expense Accruals

  5. Expense Accruals

  6. Expense Accruals

  7. Assumptions • Accounting will continue to review automatic Peoplesoft accruals to implement E-entry accruals and reversals. • Current year E-entry accruals are reconfirmed by Accounting staff prior to the new fiscal year to determine if any adjustments need to be made. • Accrual policies and definitions will be distributed and reviewed during budget process.

  8. What Causes a Revenue Accrual? • Revenue Accruals are rare and only done when confirmed revenue could not be posted to the general ledger at month close. • Triggers: • Other operating revenue that is confirmed could not be posted to the general ledger (I.e. HMFP monthly parking payment not received prior to month close); typically entered at departmental request • Standard revenue accruals for long-term revenue sources (I.e. Rental Income, Resident income, other affiliation agreements) • Accounting may contact department to determine if other operating revenue accrual required if significant variance observed.

  9. Contact • For further information or questions, please contact: • Sue Gammons • Accounting Manager 7-5408 • Or • Eileen Simons • Assistant Controller, Fiscal Services 7-0364

More Related