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<p class="MsoNormal">Good evening, <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">The Business Affairs Office Financial Services Department would like to remind University of Oregon (UO) personnel of important accrual accounting procedures regarding prepaid expense, payables, accounts receivable, unearned revenue, and
undistributed revenue. <o:p></o:p></p>
<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal">According to Generally Accepted Accounting Principles (GAAP), accrual accounting requires expense and revenue to be recorded in the fiscal year and period in which goods or services are received or provided. The timing of the payment and
the availability of budget or cash is irrelevant to which period transactions are recorded in. <o:p></o:p></p>
<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal">General ledger account codes are used to perform accrual accounting entries. Department personnel should maintain detailed lists of transactions (subsidiary ledgers) for each of the general ledger account codes they use, which reconcile
to Banner FIS. It is important that balances in general ledger account codes are reviewed and adjusted as appropriate throughout the year and prior to fiscal year-end. To review these account codes, use Banner forms FGITBAL/FGIGLAC or FWIGLDD. <o:p></o:p></p>
<div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in">
<p class="MsoNormal" style="border:none;padding:0in"><b> </b><o:p></o:p></p>
</div>
<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal"><b>Prepaid Expense </b><o:p></o:p></p>
<p class="MsoNormal"><b> </b><o:p></o:p></p>
<p class="MsoNormal">Invoices and other purchases, such as Concur or Duck Depot transactions, for $5,000 or more for goods or services that will be received (partially or entirely) in a future fiscal year should be allocated to the appropriate prepaid expense
account code. To remove the prepaid and recognize the expense, post a reversing journal voucher (JV) with a transaction date in the fiscal year and period that the goods or services are to be provided. This JV may be processed ahead of time if the future period
is open. Purchases of less than $5,000 are not amortized over future fiscal years; they are expensed in the current fiscal year. <o:p></o:p></p>
<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal">For the accuracy of UO’s tax reporting, tax reportable expenses must first be coded to an expense account code when processing an invoice. Non-tax reportable expenses may be coded directly to a prepaid expense account code on an invoice.
For a list of 1099 tax reportable account codes, please see the following website:
<a href="https://fpm.uoregon.edu/accountcodesearch">https://fpm.uoregon.edu/accountcodesearch</a>. <o:p></o:p></p>
<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:10.0pt">Assuming an invoice has already been posted to expense ($5,000 or greater), input a JV to reverse the expense and record prepaid expense in the current fiscal year for any amount being
deferred to a future period: </span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:10.0pt"> </span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:10.0pt">Debit Department Index Prepaid Expense Account Code </span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:10.0pt">Credit Department Index Expense Account Code </span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:10.0pt"> </span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:10.0pt">To reverse the prepaid and recognize the expense with a transaction date in the future period or fiscal year: </span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:10.0pt"> </span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:10.0pt">Debit Department Index Expense Account Code </span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:10.0pt">Credit Department Index Prepaid Expense Account Code </span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:9.0pt"> </span><o:p></o:p></p>
<p class="MsoNormal">Common prepaid expense account codes: <o:p></o:p></p>
<p class="MsoNormal"><b> </b><o:p></o:p></p>
<table class="MsoNormalTable" border="1" cellspacing="0" cellpadding="0" style="margin-left:.5in;border-collapse:collapse;border:none">
<tbody>
<tr>
<td width="139" style="width:1.45in;border:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt">
<p class="MsoNormal" align="center" style="text-align:center"><u><span style="font-size:10.0pt">Account Code </span></u><o:p></o:p></p>
</td>
<td width="246" style="width:184.5pt;border:solid windowtext 1.0pt;border-left:none;padding:0in 5.4pt 0in 5.4pt">
<p class="MsoNormal" align="center" style="text-align:center"><u><span style="font-size:10.0pt">Title </span></u><o:p></o:p></p>
</td>
</tr>
<tr>
<td width="139" style="width:1.45in;border:solid windowtext 1.0pt;border-top:none;padding:0in 5.4pt 0in 5.4pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:10.0pt">A5019 </span><o:p></o:p></p>
</td>
<td width="246" style="width:184.5pt;border-top:none;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt">
<p class="MsoNormal"><span style="font-size:10.0pt">Prepaid Services & Supplies </span><o:p></o:p></p>
</td>
</tr>
<tr>
<td width="139" style="width:1.45in;border:solid windowtext 1.0pt;border-top:none;padding:0in 5.4pt 0in 5.4pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:10.0pt">A5020 </span><o:p></o:p></p>
</td>
<td width="246" style="width:184.5pt;border-top:none;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt">
<p class="MsoNormal"><span style="font-size:10.0pt">Prepaid Travel </span><o:p></o:p></p>
</td>
</tr>
<tr>
<td width="139" style="width:1.45in;border:solid windowtext 1.0pt;border-top:none;padding:0in 5.4pt 0in 5.4pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:10.0pt">A5021 </span><o:p></o:p></p>
</td>
<td width="246" style="width:184.5pt;border-top:none;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt">
<p class="MsoNormal"><span style="font-size:10.0pt">Prepaid Subscriptions & Memberships </span><o:p></o:p></p>
</td>
</tr>
<tr>
<td width="139" style="width:1.45in;border:solid windowtext 1.0pt;border-top:none;padding:0in 5.4pt 0in 5.4pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:10.0pt">A5022 </span><o:p></o:p></p>
</td>
<td width="246" style="width:184.5pt;border-top:none;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt">
<p class="MsoNormal"><span style="font-size:10.0pt">Prepaid Capital Assets </span><o:p></o:p></p>
</td>
</tr>
<tr>
<td width="139" style="width:1.45in;border:solid windowtext 1.0pt;border-top:none;padding:0in 5.4pt 0in 5.4pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:10.0pt">A5023 </span><o:p></o:p></p>
</td>
<td width="246" style="width:184.5pt;border-top:none;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt">
<p class="MsoNormal"><span style="font-size:10.0pt">Prepaid Software Expenditures </span><o:p></o:p></p>
</td>
</tr>
<tr>
<td width="139" style="width:1.45in;border:solid windowtext 1.0pt;border-top:none;padding:0in 5.4pt 0in 5.4pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:10.0pt">A5030 </span><o:p></o:p></p>
</td>
<td width="246" style="width:184.5pt;border-top:none;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt">
<p class="MsoNormal"><span style="font-size:10.0pt">Prepaid Misc Expense </span><o:p></o:p></p>
</td>
</tr>
</tbody>
</table>
<div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in">
<p class="MsoNormal" style="border:none;padding:0in"> <o:p></o:p></p>
</div>
<p class="MsoNormal"><b> </b><o:p></o:p></p>
<p class="MsoNormal"><b>Payables </b><o:p></o:p></p>
<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal">When inputting Banner invoices, please pay careful attention during the first five business days of the month, while the prior fiscal period is still open. When possible, Banner invoices should be back dated to the prior period if the goods
or services were received in that period. <o:p></o:p></p>
<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal">If an invoice is paid with a transaction date in the new fiscal period that should have been back dated, input a JV to record the expense and payable in the prior period, as follows: <o:p></o:p></p>
<p class="MsoNormal"><b> </b><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:10.0pt">To record the expense and payable in the period the goods or services were received: </span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:10.0pt"> </span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:10.0pt">Debit Departmental Index Expense Account Code </span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:10.0pt">Credit Departmental Index B0190 – Received Items Payable </span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:10.0pt"> </span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:10.0pt">To reverse the accrual in the period in which the invoice was paid: </span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:10.0pt"> </span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:10.0pt">Debit Departmental Index B0190 – Received Items Payable </span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:10.0pt">Credit Departmental Index Expense Account Code </span><o:p></o:p></p>
<div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in">
<p class="MsoNormal" style="border:none;padding:0in"><span style="font-size:10.0pt"> </span><o:p></o:p></p>
</div>
<p class="MsoNormal"><b> </b><o:p></o:p></p>
<p class="MsoNormal"><b>Accounts Receivable </b><o:p></o:p></p>
<p class="MsoNormal"><b> </b><o:p></o:p></p>
<p class="MsoNormal">Departments that sell products or provide services should post revenue and receivables based on when the product or services are provided, not when the payment is received. Departments should accrue amounts owed to them by customers external
to the UO. <o:p></o:p></p>
<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:10.0pt">To record revenue and a receivable when the goods or services are provided:<br>
</span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:10.0pt">Debit Department Index A3103 - Misc A/R </span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:10.0pt">Credit Department Index Revenue Account Code </span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:10.0pt"> </span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:10.0pt">To reduce the receivable, deposit the payment utilizing TWADEPO: </span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:10.0pt"> </span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:10.0pt">Debit (CASH, CHEK, CARD, or BANK depending on how the revenue was received) </span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:10.0pt">Credit (MISC) Department Index A3103 – Misc A/R </span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:10.0pt"> </span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:9.0pt"> </span><o:p></o:p></p>
<p class="MsoNormal">Additional requirements at year-end include analysis of accounts for uncollectable amounts and preparation of a detailed accounts receivable aging list reconciled to the general ledger. <o:p></o:p></p>
<div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in">
<p class="MsoNormal" style="border:none;padding:0in"> <o:p></o:p></p>
</div>
<p class="MsoNormal"><b> </b><o:p></o:p></p>
<p class="MsoNormal"><b>Unearned Revenue </b><o:p></o:p></p>
<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal">Unearned revenue is a liability recorded for payments received for goods or services which have not yet been provided. A JV needs to be processed in the future period or year that the goods or services are to be provided. <o:p></o:p></p>
<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:10.0pt">To deposit payment through TWADEPO when it is received: </span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:10.0pt"> </span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:10.0pt">Debit (CASH, CHEK, CARD, or BANK depending how payment was received) </span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:10.0pt">Credit (MISC) Department Index Unearned Revenue Account Code </span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:10.0pt"> </span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:10.0pt">To recognize the revenue in a future period or fiscal year: </span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:10.0pt"> </span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:10.0pt">Debit Department Index Unearned Revenue Account Code </span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:10.0pt">Credit Department Index Revenue Account Code </span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt"> </span><o:p></o:p></p>
<p class="MsoNormal">Common unearned revenue account codes: <o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-size:10.0pt"> </span><o:p></o:p></p>
<table class="MsoNormalTable" border="1" cellspacing="0" cellpadding="0" style="margin-left:.5in;border-collapse:collapse;border:none">
<tbody>
<tr>
<td width="151" style="width:113.4pt;border:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt">
<p class="MsoNormal" align="center" style="text-align:center"><b><span style="font-size:10.0pt">Account Code </span></b><o:p></o:p></p>
</td>
<td width="234" style="width:175.5pt;border:solid windowtext 1.0pt;border-left:none;padding:0in 5.4pt 0in 5.4pt">
<p class="MsoNormal" align="center" style="text-align:center"><b><span style="font-size:10.0pt">Account Code Title </span></b><o:p></o:p></p>
</td>
</tr>
<tr>
<td width="151" style="width:113.4pt;border:solid windowtext 1.0pt;border-top:none;padding:0in 5.4pt 0in 5.4pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:10.0pt">B5120 </span><o:p></o:p></p>
</td>
<td width="234" style="width:175.5pt;border-top:none;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt">
<p class="MsoNormal"><span style="font-size:10.0pt">Prepaid Tuition & Fees </span><o:p></o:p></p>
</td>
</tr>
<tr>
<td width="151" style="width:113.4pt;border:solid windowtext 1.0pt;border-top:none;padding:0in 5.4pt 0in 5.4pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:10.0pt">B5802 </span><o:p></o:p></p>
</td>
<td width="234" style="width:175.5pt;border-top:none;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt">
<p class="MsoNormal"><span style="font-size:10.0pt">Unearned Revenue </span><o:p></o:p></p>
</td>
</tr>
<tr>
<td width="151" style="width:113.4pt;border:solid windowtext 1.0pt;border-top:none;padding:0in 5.4pt 0in 5.4pt">
<p class="MsoNormal" align="center" style="text-align:center"><span style="font-size:10.0pt">B5817 </span><o:p></o:p></p>
</td>
<td width="234" style="width:175.5pt;border-top:none;border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt">
<p class="MsoNormal"><span style="font-size:10.0pt">Unredeemed Gift Cards/Certificates </span><o:p></o:p></p>
</td>
</tr>
</tbody>
</table>
<div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in">
<p class="MsoNormal" style="border:none;padding:0in"><span style="font-size:10.0pt"> </span><o:p></o:p></p>
</div>
<p class="MsoNormal"><span style="font-size:9.0pt"> </span><o:p></o:p></p>
<p class="MsoNormal"><b>Undistributed Revenue</b> <o:p></o:p></p>
<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal">Revenue earned for goods or services that is accumulated in the liability account code B5801 until distributed as revenue. Undistributed revenue balances should be cleared to zero each period, and must be cleared at year-end.<o:p></o:p></p>
<div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in">
<p class="MsoNormal" style="border:none;padding:0in"> <o:p></o:p></p>
</div>
<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal">If you have any questions, please contact us or visit our Fiscal Procedures webpage at
<a href="https://ba.uoregon.edu/finance-and-accounting/fiscal-procedures">https://ba.uoregon.edu/finance-and-accounting/fiscal-procedures</a>. <o:p></o:p></p>
<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal">Thank you, <o:p></o:p></p>
<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal">BAO Financial Services Department <o:p></o:p></p>
<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal">Phil Davis, 6-3524, <span class="MsoHyperlink"><span style="color:blue"><a href="mailto:pdavis@uoregon.edu"><span style="color:blue">pdavis@uoregon.edu</span></a></span></span> <o:p></o:p></p>
<p class="MsoNormal">Jill Ritz, 6-1256, <a href="mailto:jritz@uoregon.edu"><span style="color:blue">jritz@uoregon.edu</span></a><span class="MsoHyperlink"><span style="color:blue"> </span></span><o:p></o:p></p>
<p class="MsoNormal">Robbin Howard, 6-1115, <a href="mailto:rchoward@uoregon.edu">
<span style="color:blue">rchoward@uoregon.edu</span></a><span style="font-size:9.0pt"> </span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:black"><o:p> </o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
</div>
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