ENTRY NO. A–9, ACCRUE REVENUE - 10610

(Revised: 06/2023)

Purpose: To accrue revenue earned as of June 30 but not received.

References: SAM Sections 8217, 8296, and 10442

Method A: Adjust Revenues if Deferred During the Year - This entry is semi-reversed in the new fiscal year. See SAM Section 10611.

Debit/ Credit	Account	Legacy Account	Account Description	Note
Debit	1290000	1600	Provision for Deferred Receivables	a
Credit	20100xx	3114	Due to Other Funds -Current	b
Credit	2011000	3115	Due to Other Appropriations Within Same Fund- Current	c
Credit	4xxxxxx	8000	Revenue	d

 

Note:                                                                                                                 

a. Amount required to adjust this account balance for revenue earned but not received as of June 30 for fully deferred receivables that are estimated to be collectible within the ensuing fiscal year.

b. Amount of adjustment in Note a applicable to Due to Other Funds.
c. Amount of adjustment in Note a applicable to Due to Other Appropriations.
d. Amount of adjustment in Note a applicable to Revenue.

Throughout the fiscal year, some accounts have been maintained on a fully deferred basis. On June 30, revenue related to these accounts is accrued by adjusting the Provision for Deferred Receivables in the manner stated in Note a. Revenue earned in this fiscal year is assumed to be collectible within the ensuing fiscal year unless information exists to the contrary. The amount of accounts receivable that probably will not be collected during the ensuing fiscal year will remain in the Provision for Deferred Receivables account and will not be accrued as revenue.

Method B: Accrue Revenue Receivables (Earned and not Billed) – This entry is reversed in the new fiscal year.

Debit/ Credit	Account	Legacy Account	Account Description	Note
Debit	1200000	1313	Accounts Receivable-Revenue	a
Debit	124xxxx	1400	Due from Other Funds or Appropriations	b
Debit	126xxxx	1500	Due from Other Governments	c
Credit	4xxxxxx	8000	Revenue	d

Note:

1. Revenue earned as of June 30 to be collectible within the ensuing fiscal year.
2. Revenue earned from other funds and appropriations as of June 30 to be collectible within the ensuing fiscal year.
3. Revenue earned from other governments as of June 30 to be collectible within the ensuing fiscal year.
4. Revenue earned but not received as of June 30 to be collectible within the ensuing fiscal year.

Method C: Adjust Current Year Billed Revenue Receivables Not Collectible in the New Year – This entry is reversed in the new fiscal year.

Debit/ Credit	Account	Legacy Account	Account Description	Note
Debit	4xxxxxx	8000	Revenue	a
Credit	1290000	1600	Provision for Deferred Receivables	b

Note:

1. Current enactment year revenue receivable not expected to be collectible within the ensuing fiscal year should be deferred.
2. Amount required to adjust this account balance for revenue earned but not received as of June 30 for fully deferred receivables that are not expected to be collectible within the ensuing fiscal year.