ENTRY NO. A–4, ACCOUNTS RECEIVABLE ABATEMENTS AND REIMBURSEMENTS AND CERTAIN COLLECTIONS ARE ADJUSTED WHEN AN APPROPRIATION REVERTS - 10603
Nature of Transaction:
Accounts receivable and certain collections are adjusted for the following when an appropriation reverts:
- Abatements and reimbursements not collected before reversion, and
- Amounts collected before reversion but credited by the State Treasury after reversion.
(This entry is recorded as of the date on the Controller's Journal Entry reverting the appropriation.)
Journal Entry for General Ledger Account:
Debit:
1319 Accounts Receivable—Other a/
9893 Prior Year Appropriation Adjustments b/
Credit:
1311 Accounts Receivable—Abatements c/
1312 Accounts Receivable—Reimbursements d/
1600 Provision for Deferred Receivables e/
9891 Refunds to Reverted Appropriations f/
a/ c + d
b/ e + f
c/ Amount of abatements not collected before reversion. (Includes both accrued and reserved receivables.)
d/ Amount of reimbursements not collected before reversion. (Includes both accrued and reserved receivables.)
e/ The amount of accrued abatements or reimbursements not collected before reversion.
f/ Amount collected prior to reversion but not credited into the State Treasury until after reversion.
Source:
Analysis of accounts receivable and recent collections applicable to reverted appropriations.
Explanation:
Abatement and reimbursement receivables are no longer such after the appropriation reverts. Therefore, at the time the appropriation reverts (usually as of June 30) the department must reclassify the receivables.
Abatement and reimbursement collections credited into the State Treasury after the appropriation reverts will be credited to a Refunds to Reverted Appropriations account by the State Controller's Office.