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Accruals - Accrued Income

Used when goods or services are provided to a customer in the current fiscal year but are not billed for until the following fiscal year. This is required for items of $10,000 or more, optional for items $1,000 or more, and should not be done for items under $1,000.

Do not accrue for interdepartmental billings (any goods/service charged through an IB document or feed).

Examples:

• The normal practice in your self-supporting fund is to invoice a month after the services are rendered. This means consulting services provided in June of one fiscal year are invoiced after that year's fiscal close and post in July of the next fiscal year.
• In July of one fiscal year, you received registration fees for a conference held in June of the prior fiscal year.

To record accrued income using the Auxiliary Voucher (AVAE):

1. CREDIT the same Full Accounting Unit (FAU) used when the income was received.
2. Offset (DEBIT):

   Account	Account Description	Object	Object Code Description	DR/CR
   1126790	Sundry Receivables	0301	Accrued Income	Debit

Remember:

• Income for one fiscal year must be billed or received (i.e., posted) in the next fiscal year.
• Use the Accounting Period called Close 2012.
• Enter a reversal date in the AVAE document (equal to or greater than 7/20/200X).
• Must include the date the service was performed or the goods delivered, customer name, invoice number and an explanation.
• You do not need more than one line for the Accrual account.
• The reversal of the AVAE will offset the income credited for a net effect of $0 in the period it was originally posted.

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