Adjust or Correct Cash Receipt Transactions
Below are a few examples of using an adjusting entry to correct a cash deposit. These types of adjustments should be in a Batch Type 2 or 5. But if you are reclaiming an insufficient funds check from STO, use a Batch Type I.
Also, if you need to reduce a deposit that is in Batch Type J, use an adjustment in a Batch Type I, and enter the Transaction Code as a Reversal.
For a cash receipt deposit done with a TC 101, enter the TC 101R exactly as the original deposit, then enter a new TC 101 transaction for the exact amount as the original deposit, but with the correct fiscal codes.
For example, enter the following two transactions in one batch:
In this example: An agency deposits cash to an undistributed suspense account using TC 108 in a Batch Type J until they can determine which Revenue Subobject to use. The amount of undistributed deposit shows on the BALANCE of the Subsidiary File in STARS.
After determining the Revenue Subobject to use, enter the following two transactions in one batch:
To reverse a TC 108 deposit, enter a TC 109 to the suspense account and record the amount as a revenue. No other offsetting transaction is needed. When using a TC 109, you must use the same Fund as the original TC 108 transaction. (To record the revenue in a different Fund, use a TC 108R and then a TC 101 to the new Fund.)
A TC 109 posts to general ledger accounts 2402 (DR-suspense clearing account) and 4100 (CR-revenues).
In this example, the State Treasurer's Office (STO) sweeps an Agency's outside bank account and then creates a deposit using a TC 110. A TC 110 posts only to the General Ledger File under GL account 2405. There is no subsidiary involved with a Treasurer's sweep account. The CURRENT BALANCE in the GL 2405 is the amount of the Treasurer's sweep account.
Enter the following two transactions in one batch:
Enter a TC 111 to reverse a TC 110 deposit to the Treasurer's sweep account and record the amount as a revenue. No offsetting transaction is needed. When using a TC 111, you must use the same Fund as the initial TC 110.
Here is an example of an agency that enters a deposit on behalf of another agency, but transfers it out using a TC 550 to the wrong agency.
If the TC 550R transaction cannot post due to a lack of cash, use TC 549R.
Agency receives a cash transfer-in (from a TC 551 that is automatically generated) but needs the cash to post to a specific Project. Since a TC 551 transfer-in affects the GL 4700-Operating Transfer In, the receiving agency should use TC 551R and TC 454 in the same batch.
Agency receives a cash transfer-in (from a TC551 that is automatically generated) to an incorrect revenue subobject. A TC 551 transfer-in affects GL 4700-Operating Transfer In. The receiving agency should use TC 551R and TC 551 to keep the posting in GL 4700.
Let's say an agency receives a cash transfer-in (from a TC 551 that is automatically generated) to an incorrect Fund. A TC 551 transfer-in affects GL 4700-Operating Transfer In, so the receiving agency should use TC 552 and TC553 (transfers between Funds) in one batch.
Some agencies have Funds that have a zero balance, since the only amounts in the Fund are used for a classification of revenue and a transfer out, which net to zero. A TC 549R reverses a receipt received in those cases.
TC 549R changes the posting order, reversing the transfer out (putting cash into the Fund) then reversing the revenue (removing the cash from the Fund). By reversing the posting order, the TC 549R reverses the transfer out (transfers made) first, putting the cash back into the Cash Control File. Then, STARS can reverse the revenue posting (receipts/collections) cash from the Cash Control File.
TC 549R will automatically generate a TC 551R.
In the case of cash that was receipted to the wrong agency, enter a TC 555 to record the transfer out of the wrong agency. This TC generates a TC 551 to record the transfer in to the correct agency.
TC 555 debits GL 4800 Operating Transfers Out and credits GL 1003 Cash in Treasury.
The following transaction codes can be used to refund revenue or a suspense account after you have deposited cash into a suspense account or have classified it as revenue.
There are transaction codes that do not post to expenditures but only disburse the cash. However, before you can disburse cash, you must first determine where you originally posted the cash. Typically, enter cash disbursements (refunds) using Batch Type 4 or 5. Use transactions that do not post against your appropriation.
The following are the most commonly used disbursement transaction codes. You can find other disbursement transaction codes on the DAFR8740 (General Ledger to Transaction Code Cross-Reference) report.