Accruals and Deferrals

Type

Applicability

Accounting

Reverse?

Accrued Expenses

Goods or services received or provided to MIT in FY09 for which payment will not be made until FY10. DO NOT accrue the expenses if invoice has been entered by Accounts Payable in June but is not expected to be paid until after year end because these will automatically accrue on your cost objects. In the absence of an actual invoice make a reasonable estimate.

Debit appropriate cost object and cost element and Credit
internal order
1216800 using the same cost element.

Yes, in period 1, FY10

Accrued Income

Goods or services provided by MIT in FY09 for which payment will not be received until FY10. If actual billings will not occur until after closing, make a reasonable estimate.

Credit appropriate cost object and cost element and Debit internal order
1078201 using the same cost element.

Yes, in period 1, FY10

Deferred Expenses

Goods or services paid in FY09 that relate to FY10. Examples include prepaid rent and insurance . DO NOT defer expenses not covered by FY09 budget. If Accounts Payable has processed an invoice by June 30th and the activity relates to FY10 these expenses should be deferred.

Credit appropriate cost object and cost element and Debit internal order
1121400 using the same cost element.

Yes, in period 1, FY10

Deferred Revenue

Income received in
FY09 that relates to FY10 activities or services. Example: deferred subscription revenue for publications to be issued in FY10.

Debit appropriate cost object and cost element and Credit cost object 1225201 using the same cost element.

Yes, in period 1, FY10