![]() ![]() Recording of inventories on the balance sheet is not encouraged unless the inventory value is in excess of $50,000. Inventories, 13xx-Agree to another systemĬertain areas maintain inventories for sale as part of their business operations. Where departments maintain their own receivables from customers, reconciliation of the general ledger balance will entail agreement to their supporting listing of customer invoice balances. Reconciling items typically include: deposits in transit at month end, bank fees not recorded on the general ledger, and outstanding checks not yet recorded by the bank.ĭepartment Receivables, 12xx-Agree to another systemĬertain departments do not utilize the central university receivables system. Study abroad, Jerusalem Center.) A traditional bank reconciliation performed monthly will reconcile the balance per the general ledger to the balance per bank. ![]() ![]() Discussion of each type and appropriate means for reconciling follows:ĭepartment Bank Accounts, 10xx (allowed only as approved by Treasury Services) - Agree to another systemĬertain departments maintain bank accounts to facilitate distant operations (e.g. Accrued Liabilities (Recorded by Financial Services)Ĭampus Controller Reconciliation ResponsibilityĬampus controllers are responsible to assure reconciliation of other balance sheet accounts.Campus entities are not responsible for reconciling these university accounts, as opposed to department accounts. Certain university balance sheet accounts are reviewed and reconciled regularly by Financial Services personnel. Not all balance sheet accounts are controlled and reconciled by campus departments. In other cases, reconciliation means “provide a list of transactions that make up the balance and assure that all the transactions have been properly classified.” A more detailed explanation of the various types of accounts is provided below.įinancial Services Reconciliation Responsibility It can be anything from a simple handwritten list or Excel spreadsheet to a Quicken-type program or even a larger system). For some accounts, reconciliation means “agree the balance on the monthly BOb financial reports to a supporting system.” (A “ supporting or subsidiary system” is a non-PeopleSoft system that is used internally by the department to keep track of transactions. What does it mean to “reconcile” an account? Not all accounts are created equal. Even departments that do not make such entries should occasionally look at their balance sheet to make sure a miscoded entry has not been recorded to their accounts. Many campus entities record transactions to balance sheet accounts and are therefore responsible to know what activity is occurring and to assure proper classification for those transactions. The balance sheet lists assets (claim on cash, prepaids, receivables, inventory, etc.) and liabilities (accrued liabilities, payroll and taxes payable, notes payable, deferred revenue, etc). Every campus entity also has a Balance Sheet. These entries adjust balances on the Budget/Expense Summary reports. Typically, accounting transactions for campus entities are recorded to revenue and expense accounts. ![]()
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