10506 ENTRY NO. 6 [INVOICES ARE PREPARED]
(Revised 5/87)
Nature of Transaction:
Agency prepares invoices for abatements and for reimbursements, revenue, and other income.
Journal Entry for General Ledger Accounts:
Debit:
1311 Accounts Receivable—Abatements a/
1312 Accounts Receivable—Reimbursements b/
1313 Accounts Receivable—Revenue c/
1319 Accounts Receivable—Other d/
Credit:
1600 Provision for Deferred Receivables e/
8100 Reimbursements f/
9000 Appropriation Expenditures g/
9893 Prior-Year Appropriation Adjustments h/
a/ amount of expenditure abatements billed and all sales tax billed regardless of type of transaction. (See SAM Section 10220 for definition of an abatement.)
b/ amount of reimbursements billed.
c/ amount of revenue items billed.
d/ amount of Accounts Receivable—Other billed.
e/ amount of items billed in "c" and "d" plus (1) the 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 (2) any other receivables for which a reserve is deemed appropriate.
f/ 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.
g/ amount of current year appropriation expenditure abatement items billed and all sales tax billed regardless of type of transaction.
h/ amount of abatement and reimbursement items billed that are applicable to prior fiscal year appropriations no longer available for encumbrance.
Source:
Document:Agency invoice Register:Invoice Register
Explanation:
This entry is used to record the billing for unpaid abatements, reimbursements, revenue, and other income items. 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.
INVOICE REGISTER
