Cash Receipts

One type of journal entry is a cash receipt. Cash receipts record funds received for payment of services or goods in the Budgetary Control (BC) module. The applicable revenue accounts are credited and the allotment or cash account is debited to reflect the increase in the cash amount.

Cash receipt entries can be recorded as data type 1 journal entries, using the appropriate accounting rule.

• CB retains the original entry and generates an offset to the Budget Code Cash Account (111260).
• CH retains the original entry and generates an offset to the Cash in Allotment Account (111270).

The CB and CH accounting rules are used to create the center for the cash accounting distributions as follows:

Cash deposits to the State Treasurer are recorded according to agency-specific procedures. If any changes are made to the process of recording deposits, you will be notified.

After a deposit is made, you must enter the cash receipt in the North Carolina Accounting System. The cash receipt effective date must be the same as the deposit date.

Year-End Accruals

The purpose of accruals is to convert financial data reported on a cash basis to a modified accrual basis, as required for Comprehensive Annual Financial Reporting (CAFR) purposes.

Accrual adjustments to the thirteenth period are necessary to accurately report revenues and expenditures. They are used to achieve an accurate statement of assets, liabilities and fund equities.

Accrual transactions must be recorded with an effective date of June 30th to place it in the thirteenth period. The following transactions represent accrual transactions:

• Expenditures and related liabilities incurred as of June 30, but not paid/invoiced until July 1 through July 31.
• Revenues and related receivables earned as of June 30, but not received until July 1 through July 31.

There are several types of year-end accruals:

• Programatically generated accruals for the current fiscal year include:
• Payroll accruals (payrolls paid in July with payroll ending dates prior to July 1)
• Accounts Payable accruals (flagged invoices)
• Purchasing accruals (purchase orders processed and items received but not invoiced)
• Programatically generated reversals of prior year accruals include:
• Payroll accruals (payrolls paid in July with payroll ending dates prior to July 1)
• Accounts Payable accruals (flagged invoices)
• Cash receipts keyed as a transaction type 23 cash receipts accrual.
• Manually generated current fiscal year accruals/reversals. Manual journal vouchers are prepared for accruals that cannot be identified and posted through a programmatic process. The reasons they may not be identified are:
• They required proration between fiscal years.
• The entries were erroneously omitted due to an incorrect document ID.
• They were not identified as an accruable transaction until after the programmatic batches were created.
• They were not easily identified programmatically as eligible for accruals.

Use a transaction type 34 when you are reclassifying or correcting something and you want that change to be permanent. For example, you discover some receipts were improperly coded to the wrong cost center. You want your end-of-year records to be correct and you want the correct balances carried forward to the next (and all subsequent) years. Accrual transactions with a type 34 will not be reversed.