What This Process Does


  • This process is applicable for revenue type receipts that are deposited to one fiscal year and need to be reclassified as revenue/receivable for the prior fiscal year (i.e., accruals). This has been done to facilitate recording of such receivables in the software without the need for journal entries.
  • Previously receivables for financial receipts had to be entered as revenue type journal entries with a debit to the applicable receivable code; the financial receipt was then entered as a balance sheet receipt, debiting cash and crediting the receivable.


What Has Been Added to Receipt File


  • A field has been added to the receipt journal ID for entry of the receivable code applicable to the journal ID (if more than one receivable code is applicable, you may need to create additional receipt journal IDs as a journal ID can only have one receivable code).
  • The receivable code will default to the one in the receipt journal ID (or default blank if one is not assigned to the journal). If blank, a receivable code can be chosen during the reclassification process.
  • This receivable code is automatically used when the Reclassify Revenue as Prior Fiscal Year function (on the Accounting tab of the receipt maintain screen) is engaged. To be reclassified:
    • The receipt must be a revenue type receipt
    • The Reclassified flag in the receipt must be false
    • The Source of the receipt cannot be Classify Prior Fiscal Year (the latter prevents a reclassified receipt from being reclassified again)
    • The receipt must be source user verified


Requirements


  • Enterprise and OpenRDA 101 customers that have the Software Bundle FM 23--Default Account Codes and Software Bundle FM 31--Reclassification of Receipts can see this feature.


Reclassifying Revenue to Prior Fiscal Year


  1. Finance → Financial Management → Query → Receipts → Accounting Tab → Classify Revenue as Prior Fiscal Year button
  2. Click Revenue as Prior Year button.
  3. The CLASSIFYPRYR screen appears showing the receipt information along with the receivable code that will be used; if field is blank a receivable code must be entered or selected from the BROWSE using the lookup icon.
  4. Before it can be saved, make sure the following requirements are met:
    • The receipt and the receivable code must be in the same fund.
    • The receipt must be source user verified (audit trail) before it can be reclassified.
  5. Review and click Save to complete the input for the reclassification.
  6. The CLASSIFYPRYR screen disappears. The receipt record shows the Revenue as Prior Year button greyed out; it also shows the Reclassified box as true.
  7. This process will create an offsetting receipt for the current fiscal year (identical to the original receipt except that the Debit Code will be the receivable code from the receipt journal) and an identical receipt for the prior fiscal year (except that the Debit Code will be the receivable code from the receipt journal).
  8. Both receipt records have to be verified, distributed (run twice – once for prior FY and for current FY) and posted. The Bank Rec Updated fields will automatically populate with this process (as this reclassification has no effect on the deposits in the Bank Rec module).
  9. The Set Beginning Balances process needs to be run to reset the beginning balances for the new year since there is a reclassification of revenue as this affects ending balances for the previous year; thus affects beginning balances for the new year.