ENTRY NO. A–4, ADJUST ACCOUNTS RECEIVABLE ABATEMENTS AND REIMBURSEMENTS AND CERTAIN COLLECTIONS WHEN AN APPROPRIATION REVERTS - 10603

(Revised: 06/2023)

Purpose: To adjust accounts receivable abatements, reimbursements, and certain collections when an appropriation reverts for the following:

• Abatements and reimbursements not collected before reversion.
• Amounts collected before reversion but credited by the State Treasury after reversion.

Abatement and reimbursement receivables are no longer available after the appropriation reverts.

 

This entry is recorded as of the date on the Controller’s Journal Entry reverting the appropriation.

 

The State Controller’s Office will credit a Refund to Reverted Appropriations account when abatement and reimbursement collections are remitted into the State Treasury after an appropriation reverts.

 

References: SAM Section 8295

 

Step 1: Reverse Original Accounts Receivable Abatements and Reimbursements when an Appropriation Reverts

Debit/ Credit	Account	Legacy Account	Account Description	Note
Debit	48xxxxx	8100	Reimbursements	a
Debit	5xxxxxx	9000	Appropriation Expenditures	b
Debit	5802000	9893	Prior Year Appropriations Adjustments	c
Credit	1200050	1312	Accounts Receivables-Reimbursements	d
Credit	1200100	1311	Accounts Receivables-Abatements	e
Credit	5901000	9891	Refunds to Reverted Appropriations	f

 

Note:

1. Reimbursements not collected before reversion.
2. Abatements not collected before reversion.
3. Abatements or reimbursements collected before reversion, but not credited to the State Treasury until after reversion.
4. Accounts receivable-reimbursements not collected before reversion.
5. Accounts receivable-abatements not collected before reversion.
6. Abatements or reimbursements collected before reversion, but not credited to the State Treasury until after reversion.

Step 2: Reclassify Receivables When an Appropriation Reverts

Debit/ Credit	Account	Legacy Account	Account Description	Note
Debit	1209900	1319	Accounts Receivable-Other	a
Credit	1290000	1600	Provision for Deferred Receivables	a

 

Note:

a. Abatements and reimbursements not collected before reversion.