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Cornell University
Cornell University
Division of Financial Services
Accounting
  • About
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  • Chart of Accounts
    • Transaction String
    • Accounts
      • Sub-Accounts
    • Object Codes
      • Sub-Object Codes
      • Revenue Object Codes
    • Function Codes
    • Fund Groups
    • Charts
    • Organizations
    • Using Sub-Accounts and Sub-Object Codes for Activity Tracking
    • Managing Accounts
  • Topics
    • Abandoned Property
    • Accounts Payable
      • AP Payment Schedule
      • Direct Deposit for Reimbursements
      • Check and Electronic Payments
      • Foreign Currency Payments
      • Help for Payees
      • Help for BSCs
    • Accounts Receivable
      • Interdepartmental Billings
        • Authorized Direct Charge Processors
      • Registering Cornell in an External Entity’s Payment System
      • Writing Off Uncollectable Receivables
    • Deposits
    • External Organizations
    • Gift Funds
      • Indirect Cost on Gifts
      • Receiving Gifts
      • Gift Restrictions
      • Managing Restricted Gift Accounts
    • Interdepartmental Activity
    • Inventory Accounting Guidelines
    • Lease Classification
    • Petty Cash and Cash Drawers
    • Plant Construction Funds
    • Reconciliation Guidelines
      • Reconciling Asset and Liability Object Codes
      • Monitoring Operating Activity
      • Object Code Reviews
      • Correcting Unknown Variances
    • Reserve Accounts
    • Revenue Classification
      • Tuition and Student Fees
      • Government Appropriations
      • Grant and Contract
      • Gifts and Contributions
      • Medical Services
      • Investment Earnings
      • Auxiliary Enterprises
      • Educational Activities
      • Other Sales and Services
      • Interdepartmental Revenues
      • External Organization Income
      • Accounts Receivable
      • Allowance for Doubtful Accounts and Bad Debt Expenses
      • Accruals/Deferred Revenue
      • Revenue vs. Expense Reimbursement
      • Revenue Matrix
    • Transferring Funds
    • Travel Advances and Prepaid Expenses
    • WCM Accounts
      • Processing Entries to WCM
  • Invested Funds
    • Current-Year Long-Term Investment Pool Rates
    • Prior-Year Long-Term Investment Pool Rates
    • Investing in the Long-Term Investment Pool
    • Investment Glossary
  • Year-End
    • Account Reversion
    • KFS Payment Processing E-docs (DV, PREQ, PCDO)
    • Cash Deposits at Year-End
    • Revenue and Expense Year-End Accruals
    • Deadlines
  • forms
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In this section

  • Abandoned Property
  • Accounts Payable
    • AP Payment Schedule
    • Direct Deposit for Reimbursements
    • Check and Electronic Payments
    • Foreign Currency Payments
    • Help for Payees
    • Help for BSCs
  • Accounts Receivable
    • Interdepartmental Billings
      • Authorized Direct Charge Processors
    • Registering Cornell in an External Entity’s Payment System
    • Writing Off Uncollectable Receivables
  • Deposits
  • External Organizations
  • Gift Funds
    • Indirect Cost on Gifts
    • Receiving Gifts
    • Gift Restrictions
    • Managing Restricted Gift Accounts
  • Interdepartmental Activity
  • Inventory Accounting Guidelines
  • Lease Classification
  • Petty Cash and Cash Drawers
  • Plant Construction Funds
  • Reconciliation Guidelines
    • Reconciling Asset and Liability Object Codes
    • Monitoring Operating Activity
    • Object Code Reviews
    • Correcting Unknown Variances
  • Reserve Accounts
  • Revenue Classification
    • Tuition and Student Fees
    • Government Appropriations
    • Grant and Contract
    • Gifts and Contributions
    • Medical Services
    • Investment Earnings
    • Auxiliary Enterprises
    • Educational Activities
    • Other Sales and Services
    • Interdepartmental Revenues
    • External Organization Income
    • Accounts Receivable
    • Allowance for Doubtful Accounts and Bad Debt Expenses
    • Accruals/Deferred Revenue
    • Revenue vs. Expense Reimbursement
    • Revenue Matrix
  • Transferring Funds
  • Travel Advances and Prepaid Expenses
  • WCM Accounts
    • Processing Entries to WCM

See also

  • Sponsored Financial Services
  • Capital Assets
  • Cost Analysis

Accounts Receivable

Sometimes in a revenue transaction, a unit provides a good or a service and permits the customer to defer payment to a future date. In this scenario, when revenue is earned but payment is not yet received, an account receivable (A/R) should be recorded and managed. Accounts receivable are considered assets, because they represent a future resource (usually cash) to the university. Proper stewardship of A/R, like any asset of the university, is an expectation of the unit and the responsible employee.

The typical entry to record this activity is:

DR  Accounts Receivable

CR  Revenue

The following are the most common A/R object codes used by departments:

Object Code Object Code Name Description
1200 Accounts Receivable A current asset representing an amount due Cornell resulting from the sale of goods or services.
Use: Any department where goods and services are invoiced.
1280 Interdept - Accounts Receivable An asset created from sales activity between Cornell departments. An interdepartmental income code must be used on the other side of the transaction.
Use: Used by departments to record income when the customer’s account can't be charged an expense due to the period end (month or year).
1300 Accounts Receivable - Contract Grant A current asset representing an amount due Cornell as a result of invoicing contract and grant agreements or federal appropriations.
Use: Restricted for DFS use only.

When payments for outstanding A/R are received, do not record revenue again! Instead, record the cash received and reduce the receivable using an Advance Deposit (AD) e-doc.

DR  Cash (system generated entry on object code 1000)

CR  Accounts Receivable

When a unit uses subsidiary systems to manage revenue transactions, customers, and billing, the system should provide the data necessarily to record the revenue (and associated receivable) as it is earned. When it is a manual process, revenue earned during the month should be recorded monthly, at a minimum, with unpaid amounts recorded as receivables. At fiscal year-end, every unit should analyze revenue earned during that fiscal year, and record a receivable for any amounts not yet collected.

Units are responsible for reconciling their accounts receivable on a monthly basis, if revenue generating activities are occurring on a monthly basis. The unit should be able to produce the itemized details (invoices or customer account balances) that reconcile to the total reflected in the general ledger.

For additional guidance related to reconciliations, see Reconciliation Guidelines.

See also: Accounts Receivable

Division of Financial Services

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Ithaca, NY 14850

Hours:  8:00 a.m. - 4:30 p.m., Monday - Friday

 

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