ENTRY NO. 6 – [INVOICES ARE PREPARED] - 10506-OCT-2015

(Revised: 10/2015)

This entry is made to record the billing for unpaid abatements, reimbursements, revenue, and other income items.

Information:

Department prepares invoices for abatements, reimbursements, revenue, and other income. See SAM section 10220 for definition of abatement. In most cases revenue and abatement items are collected when due and normally require no billings. When Accounts Receivable—Revenue and Accounts Receivable—Other are billed, they are credited to a reserve account until collected and cleared as revenue. In contrast to this procedure, abatements are applied as decreases of expenditures and most types of reimbursements are applied as income when billed. Certain types of reimbursements are fully reserved with final accounting to be made either at the time of collection or at the time remittances are ordered into the treasury, depending upon the specific law governing the transaction. The bills are recorded in the Invoice Register as of the date they are prepared.

Abatements and reimbursements that have been accrued previously as receivables but not billed will not be included in this entry when billed. However, Accounts No. 1311, 1312, 1600, and 9893 will be adjusted for the difference between the amounts billed and the amounts previously accrued.

Source Document:

Department invoice

Register:

Invoice Register

Journal Entries for Invoices Prepared - Abatements:

Debit:

1311 Accounts Receivable—Abatements a/

Credit:

9000 Appropriation Expenditures b/

9893 Prior-Year Appropriation Adjustments c/

 

a/ amount of expenditure abatements billed and all sales tax billed regardless of type of transaction.

b/ amount of current year appropriation expenditure abatement items billed and all sales tax billed regardless of type of transaction.

c/ amount of abatement item billed that is applicable to prior fiscal year appropriations no longer available for encumbrance.

Journal Entries for Invoices Prepared - Reimbursements:

Debit:

1312 Accounts Receivable—Reimbursements d/

Credit:

8100 Reimbursements e/

1600 Provision for Deferred Receivables f/

9893 Prior-Year Appropriation Adjustments g/

 

d/ amount of reimbursements billed.

e/ amount of current year reimbursement items billed, excluding any amounts of reimbursements which according to law must be credited to an appropriation current at the time of collection or at the time cash is ordered into the treasury.

f/ amount of any reimbursement items billed which, according to law, must be credited to an appropriation current at the time of collection or at the time cash is ordered into the treasury, and a reserve is deemed appropriate.

g/ amount of reimbursement item billed that is applicable to prior fiscal year appropriations no longer available for encumbrance.

Journal Entries for Invoices Prepared – Revenue or Other:

Debit:

1313 Accounts Receivable—Revenue h/

1319 Accounts Receivable—Other i/

Credit:

1600 Provision for Deferred Receivables j/

 

h/ amount of revenue items billed.

i/ amount of Accounts Receivable-Other billed.

j/ amount of items billed in “h” and “i” for which a reserve is deemed appropriate.

 

INVOICE REGISTER
Billed To	Invoice Number	Invoice Date	Amount	Abatements Current	Abatements Prior- Year	Reimbursements Current	Reimbursements Prior- Year	Reimbursements Deferred	Revenue	Other
J. Jones	428	9-28	150.00		150.00
W. Smith	429	9-28	350.00						350.00
Dept. of	430	9-28	1,450.00			1,450.00
K. Reese	431	9-28	300.00	300.00
A. Cook	434	9-29	700.00							700.00
G. Isham	436	9-29	125.00				125.00
Dept. of	437	9-30	50.00					50.00
K. Burns	438	9-30	700.00			700.00
			3,825.00	300.00	150.00	2,150.00	125.00	50.00	350.00	700.00
				Dr. 1311 Cr. 9000	Dr. 1311 Cr. 9893	Dr. 1312 Cr. 8100	Dr. 1312 Cr. 9893	Dr. 1312 Cr. 1600	Dr. 1313 Cr. 1600	Dr. 1319 Cr. 1600

 

Illustration 10506