6509.11m_10
Page 1 of 35
FOREST SERVICE HANDBOOK
NATIONAL HEADQUARTERS (WO)
WASHINGTON, DC
FSH 6509.11m - SERVICEWIDE ACCRUAL HANDBOOK
CHAPTER 10 - ACCRUING EARNED REVENUE
Amendment No.: 6509.11m-2007-1
Effective Date: September 6, 2007
Duration: This amendment is effective until superseded or removed.
Approved: JESSE KING
Chief Financial Officer
Date Approved: 08/27/2007
Posting Instructions: Amendments are numbered consecutively by Handbook number and
calendar year. Post by document; remove the entire document and replace it with this
amendment. Retain this transmittal as the first page(s) of this document.
New Document
6509.11m_10
35 Pages
Superseded Document(s) by
Issuance Number and
Effective Date
Digest:
10 - Establishes code and caption for, “Accruing Earned Revenue”, and sets policy and
procedural direction to ensure that all revenue is accrued properly.
11 - Establishes code and caption for, “Monthly Accrual of Unbilled Earned Revenue from
Timber Harvests,” and sets forth procedural direction to determine and record an accrual for this
revenue flow.
12 - Incorporates direction previously issued in interim directive 6509.11k-2006-8, section
56.76a (Purchaser Road Credit (PRC) and Specified Road Credits (SRC)). Establishes code and
caption for “Monthly Accrual of Purchaser Road Credit and Specified Road Credit.” With minor
clerical changes, the text sets forth procedural direction to determine and record an accrual for
this revenue flow.
WO AMENDMENT 6509.11m-2007-1
EFFECTIVE DATE: 09/06/2007
DURATION: This amendment is effective until superseded or removed.
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FSH 6509.11m - SERVICEWIDE ACCRUAL HANDBOOK
CHAPTER 10 - ACCRUING EARNED REVENUE
Digest--Continued:
13 - Establishes code and caption for, “Annual Accrual of Permit Fees for Special Uses, Grazing,
and Minerals”, and sets forth procedural direction to determine and record an accrual for this
revenue flow.
14 - Establishes code and caption for, “Quarterly Accrual of Revenue for Plant-A-Tree and
Character Licensing of Smokey Bear and Woodsy Owl,” and sets forth procedural direction to
determine and record an accrual for this revenue flow.
15 - Establishes code and caption for, “Annual Accrual of Revenue Collected by Third Party
Vendors,” and sets forth procedural direction to determine and record an accrual for this revenue
flow.
16 - Establishes code and caption for, “Quarterly Accrual of Reimbursable Revenue for IncidentRelated Agreements,” and sets forth procedural direction to determine and record an accrual for
this revenue flow.
17 - Incorporates direction previously issued in interim directive, 6509.11k-2006-11. Establishes
code and caption for, “Annual Accrual of Reimbursable Revenue for Non-Incident-Related
Agreements,” and sets forth procedural direction to determine and record an accrual for this
revenue flow.
WO AMENDMENT 6509.11m-2007-1
EFFECTIVE DATE: 09/06/2007
DURATION: This amendment is effective until superseded or removed.
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FSH 6509.11m - SERVICEWIDE ACCRUAL HANDBOOK
CHAPTER 10 - ACCRUING EARNED REVENUE
Table of Contents
10.1 - Authority........................................................................................................................... 4
10.4 - Responsibility ................................................................................................................... 4
10.5 - Definitions ........................................................................................................................ 5
11 - MONTHLY ACCRUAL OF UNBILLED EARNED REVENUE FROM TIMBER
HARVESTS .......................................................................................................... 6
12 - MONTHLY ACCRUAL OF PURCHASER ROAD CREDIT AND SPECIFIED ROAD
CREDIT ................................................................................................................ 9
13 - ANNUAL ACCRUAL OF PERMIT FEES FOR SPECIAL USES, GRAZING AND
MINERALS ......................................................................................................... 13
14 - ANNUAL ACCRUAL OF REVENUE FOR PLANT-A-TREE AND CHARACTER
LICENSING OF SMOKEY BEAR AND WOODSY OWL ................................... 15
15 - ANNUAL ACCRUAL OF REVENUE COLLECTED BY THIRD PARTY VENDORS
........................................................................................................................... 18
16 - QUARTERLY ACCRUAL OF REIMBURSABLE REVENUE FOR INCIDENTRELATED........................................................................................................... 20
17 - ACCRUAL OF REIMBURSABLE REVENUE FOR NON-INCIDENT RELATED
AGREEMENTS .................................................................................................. 24
17.1 - General Information about Accruing Revenue for Non-Incident Reimbursable
Agreements ................................................................................................................... 24
17.2 - Methodology for Determining Revenue Accruals for Non-Incident Reimbursable
Agreements ................................................................................................................... 27
17.21 - Actual Unbilled Expenditures Recorded in PCAS Agreements ............................... 27
17.22 - Statistically Estimated Unbilled Expenditures Not Recorded in PCAS Agreements
................................................................................................................................... 30
17.23 - Actual Unbilled Expenditures Not Recorded in PCAS Agreements ........................ 32
17.24 - Agreement/Project Specific Entries for Sensitive PCAS Agreements ..................... 34
17.25 - Separate Project-Level Accrued Revenue Entry for Non-PCAS Agreements ......... 35
WO AMENDMENT 6509.11m-2007-1
EFFECTIVE DATE: 09/06/2007
DURATION: This amendment is effective until superseded or removed.
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FSH 6509.11m - SERVICEWIDE ACCRUAL HANDBOOK
CHAPTER 10 - ACCRUING EARNED REVENUE
The Federal Government’s standard accrual-basis accounting requires all Federal agencies to
recognize earned revenue when goods and services are sold, regardless of when the money is
collected. Recording accrual entries quarterly for revenue flows material to the agency, ensures
that sufficient revenue of the accounting period is included in the agency’s standard general
ledger and on the quarterly financial statements to match with the expenses of the period; and to
display the net results of operations. Materiality for any one revenue flow is defined as 3% of
total agency revenue. The related materiality analysis occurs annually at the ASC-B&F in
October based on the previous fiscal year’s actual revenue flows and their respective amounts.
The materiality determination is effective for the entire fiscal year.
10.1 - Authority
1. Financial Accounting Standards Advisory Board Statements of Federal Financial
Accounting Standards No. 7, “Accounting for Revenue and Other Financing Sources and
Concepts for Reconciling Budgetary and Financial Accounting” (http://www.fasab.gov).
2. United States Treasury Financial Management Service. “United States Standard
General Ledger - Treasury Financial Manual, Section 1 Chart of Accounts, Section II
Account Descriptions, and Section III Accounting Transactions”
(http://www.fms.treas.gov/ussgl/).
3. Office of Management and Budget. “OMB Circular A-136, Financial Reporting
Requirements” (http://www.whitehouse.gov/OMB). This circular provides guidelines for
Federal financial processes.
4. Office of Management and Budget. “OMB Circular A-123, Management’s
Responsibility for Internal Control, Appendix A, Internal Control Over Financial
Reporting (http://www.whitehouse.gov/OMB). This circular describes the internal
controls required over Federal financial reporting.
10.4 - Responsibility
1. Director of Budget and Finance, Albuquerque Service Center (ASC-B&F). It is the
responsibility of the Director of Budget and Finance, Albuquerque Service Center (ASCB&F) to calculate, process, and record national-level accruals for revenues as set forth in
this chapter. Quarterly quality assurance monitoring shall test the accuracy of estimation
techniques and recommend changes for improvement when needed. Materiality
determinations shall occur in October of each year based on the previous fiscal year’s
actual revenue flows and their respective amounts, and shall remain effective for the
entire fiscal year.
2. Washington Office Deputy Chiefs, Regional Foresters, Station Directors, Area
Director, Forest Products Laboratory Director, International Institute of Tropical Forestry
Director, and Forest Supervisors. It is the responsibility of the Washington Office
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EFFECTIVE DATE: 09/06/2007
DURATION: This amendment is effective until superseded or removed.
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CHAPTER 10 - ACCRUING EARNED REVENUE
Deputy Chiefs, Regional Foresters, Station Directors, Area Director, Forest Products
Laboratory Director, International Institute of Tropical Forestry Director, and Forest
Supervisors to ensure the quality and integrity of financial data processed in their areas of
responsibility, including:
a. Ensuring that all billing information is entered in the Financial Transaction
Request System or the interfacing databases such as Timber Information
Management (TIM) by the third working day preceding the end of each month,
and by the cutoff date published in the Fiscal Year Budget and Finance Annual
Closing Procedures and Calendar (available on the following website:
http://fsweb.r3.fs.fed.us/asc/bfm. After the cutoff date, fax the billing information
to the ASC-B&F as instructed in the Annual Closing Procedures.
b. Ensuring compliance with all procedures in this chapter.
c. Using express overnight mail service during the last week of September to
expedite the mailing of deposits to the Treasury-designated lockbox bank to
ensure that all collections are recorded before fiscal yearend, September 30.
10.5 - Definitions
Automated Timber Sale Accounting System (ATSA). An automated database that tracks
activity on timber sale contracts and permits, including harvest volumes, and related
deposits and earnings.
Balance Voucher (BV). An accounting document in the Foundation Financial
Information System designed to record accounting adjustments and a variety of original
internal business transactions.
IPAC. The U. S. Department of the Treasury’s automated network for “Intragovernmental Payments and Collections,” designed to eliminate the need for Federal
entities to issue paper checks to each other.
MMS. MMS is the acronym for the Minerals Management Service, a bureau of the U. S.
Department of the Interior. MMS administers subsurface minerals leases such as oil,
natural gas, and coal, for all the Federal land management agencies.
National Finance Center (NFC). The U. S. Department of Agriculture’s accounting
service center in New Orleans, LA.
Over-the-Counter (OTC). The term used for a sale in which the customer is face-to-face
with the sales person, usually in a front office setting.
WO AMENDMENT 6509.11m-2007-1
EFFECTIVE DATE: 09/06/2007
DURATION: This amendment is effective until superseded or removed.
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FSH 6509.11m - SERVICEWIDE ACCRUAL HANDBOOK
CHAPTER 10 - ACCRUING EARNED REVENUE
Revenue. An inflow of resources that the Government demands, earns, or receives by
donation. Revenue comes from two sources: exchange transactions and nonexchange
transactions. Exchange revenues arise when a Government entity provides goods and
services to the public or to another Government entity for a price. Another term for
“exchange revenue” is “earned revenue.” Nonexchange revenues arise primarily from
exercise of the Government’s power to demand payments from the public (e.g., taxes,
duties, fines, and penalties) but also include donations. Amounts of earned revenue and
related accounts receivable, must be recorded in the accounting system, and displayed on
financial statements, for the fiscal year in which revenue was earned and reportable.
(Federal Accounting Standards Advisory Board, Statement of Federal Financial
Accounting Standards 7: Accounting for Revenue and Other Financing Sources and
Concepts for Reconciling Budgetary and Financial Accounting).
Transaction Code. A 2-digit alpha-numeric code in the Foundation Financial Information
System that classifies the accounting transaction as a miscellaneous order, payment,
customer billing, cash receipt, accounting adjustment, and so forth. Transaction Code is
superior to Transaction Type. Every accounting and budgetary transaction has both a
transaction code and a transaction type.
Transaction Type. A 2-digit alpha-numeric code in the Foundation Financial Information
System that classifies the accounting transaction into more detail; subordinate to the
Transaction Code. Every accounting and budgetary transaction has both a transaction
code and a transaction type.
Unbilled Account Receivable. A Forest Service term describing amounts due from
customers for which a bill has not been issued.
United States Standard General Ledger (USSGL). Accounting guidelines issued by the
U. S. Department of the Treasury, including a chart of accounts and standard account
postings for mandatory use by all Federal government entities.
11 - MONTHLY ACCRUAL OF UNBILLED EARNED REVENUE FROM TIMBER
HARVESTS
Historically called the “TSA Receivable Estimate Accrual,” the monthly accrual of unbilled
earned revenues from timber harvest activities is required because the actual figures needed to
issue the billings are not available until the Timber Sale Accounting (TSA) system closes on
approximately the 15th of the subsequent month. The accrued earned revenues are estimated
amounts due from timber purchasers for timber harvested and removed during the current month.
Because the actual earned revenue amounts for unbilled receivables are not available and
formally recorded until the subsequent month, an accrual must be estimated and recorded each
month-end in FFIS. The accrual is only for the current month’s estimate of unbilled earned
revenues, not the total amount due from the timber purchaser.
WO AMENDMENT 6509.11m-2007-1
EFFECTIVE DATE: 09/06/2007
DURATION: This amendment is effective until superseded or removed.
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CHAPTER 10 - ACCRUING EARNED REVENUE
Descriptions of the activities generating the revenue and the quarterly accrual methodology are
as follows:
1. Activities Generating Revenue. The value of timber harvested sometimes exceeds the
amount the purchaser has paid in advance on the timber sale contract. In these cases,
estimated amounts are accrued because actual amounts won’t be available and posted to
the FFIS system until the subsequent month when the TSA system closes.
2. Monthly Accrual Methodology. On a monthly basis, an estimated amount of
unrecorded revenue related to timber harvest is determined by calculating a seasonally
adjusted average of revenues, as described in the “Monthly Unbilled Revenue Accrual,”
which may be found under Operations Interfaces on the following website:
http://fsweb.r3.fs.fed.us/asc/bfm/programs/financial-operations/receivablescollections/timber-sales/policies-procedures
The average revenue is calculated using actual monthly revenue to be billed, identified by the
TSA system on previous months’ TSA reports. The source document for the actual amounts to
be billed is a report produced by the TSA system, report number TSA 992-01, “Accounts
Receivable/Accrued Earnings”, more specifically the column headed “Closing Minus Balance.”
The ASC-B&F records the accrual entry in FFIS using a multiple line standard voucher
(transaction code SV) to enter increases to the various revenue accounts and an increase to
accounts receivable. FFIS automatically reverses the accrual entry at the beginning of the
subsequent month and the ASC-B&F reviews and approves the reversal by the 10th day of that
month.
See the data table in exhibit 01 for the transaction codes, transaction types, standard general
ledger postings and voucher information used for the accrual of unbilled earned revenue from
timber harvests.
WO AMENDMENT 6509.11m-2007-1
EFFECTIVE DATE: 09/06/2007
DURATION: This amendment is effective until superseded or removed.
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FSH 6509.11m - SERVICEWIDE ACCRUAL HANDBOOK
CHAPTER 10 - ACCRUING EARNED REVENUE
11 - Exhibit 01
Accrued Unbilled Earned Revenue:
Accrual Entry’s Information and Postings
Entry
No.
1.
2.
Fund Code(s)
5008 - National Forest
Fund Revenue
5896 - National
Grasslands Revenue
CWF2 - Cooperative
Work, Non-Agreement
Based
CWKV - Cooperative
Work, KnutsonVandenburg
BDBD - Brush
Disposal
SFSF - Salvage Sale
Fund
TPBP - Botanical
Products
SSCC - Stewardship
Contracting
Trans
Code/
Trans
Type
SV/U1
SV/U1
Standard General
Ledger Postings
Vendor
Code
Revenue Source
Code; Budget
Object
Proprietary:
Debit: 1312
Accounts Receivable
Credit: 5100
Revenue from Goods
Sold
Budgetary:
None
FS
ACCRUAL
0105
Proprietary:
Debit: 1312
Accounts Receivable
Credit: 5900 Other
Revenue
Budgetary:
None
WO AMENDMENT 6509.11m-2007-1
EFFECTIVE DATE: 09/06/2007
DURATION: This amendment is effective until superseded or removed.
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FSH 6509.11m - SERVICEWIDE ACCRUAL HANDBOOK
CHAPTER 10 - ACCRUING EARNED REVENUE
12 - MONTHLY ACCRUAL OF PURCHASER ROAD CREDIT AND SPECIFIED ROAD
CREDIT
Prior to April 1999, the Forest Service granted Purchaser Road Credit (PRC) to timber
purchasers. Under the terms of certain timber sales contracts, timber purchasers were allowed to
construct roads, bridges, and culverts to gain access to the timber they purchased. If the Forest
Service had a use for the roads upon contract completion, the timber purchaser was given a
credit, referred to as a PRC, for the value of the roads. The PRC was established in the
Automated Timber Sale Accounting System when the forest accepts the road. See paragraphs 1,
2, 3, and 4 below for direction about the accounting entries.
1. On applicable timber sale contracts, the timber purchaser can use the PRCs to offset
payments for timber harvested. As the timber purchaser uses the PRCs instead of cash
payments for timber harvested, the amount in Unearned Revenue is reduced and current
year revenue is recognized. If all PRCs have not been applied when the contract is
closed, they are cancelled and the amounts are removed from the Unearned Revenue
account and recorded in the Earned Revenue account.
2. After April 1999, the use of PRCs for new contracts is prohibited and the method of
accounting for the costs changed from recording PRCs to recording Specified Road
Credit (SRC) as revenue.
Accrual amounts for PRC and SRC assets and revenues are based on reports from the Automated
Timber Sale Accounting System (TSA), provided by the Washington Office Financial
Management Staff. The funds used to record these entries are CMEX and CNEX because these
reimbursable fund accounts allow the Forest Service to record revenue without augmenting an
appropriation. The TSA source reports are titled as follows: “Detail for Cost Established,”
“Summary for Cost Established,” “Detail for Established Credit,” and “Summary for Established
Credit.”
Accrual entries are recorded on a monthly basis and both monthly and yearend entries reverse.
a. PRCs Established. Use the TSA Report 940-01 “PRC Road Credit Established for
FY XX” to obtain current year information on road construction costs incurred by the
timber contractor. Currently, few PRC contracts remain active from the period prior
to April 1999. For PRCs established, accrual entries are recorded with a Standard
Voucher document as summarized in exhibit 01.
b. PRCs Applied. In the current fiscal year, the “effective” portion of PRCs
established will be used by timber contractors in lieu of cash to pay for timber they
have harvested. Obtain the amount of applied PRCs from the TSA Report 926-01
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EFFECTIVE DATE: 09/06/2007
DURATION: This amendment is effective until superseded or removed.
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CHAPTER 10 - ACCRUING EARNED REVENUE
“FY XX Yearend TSPIRS Report (All Contracts)”, column “FY XX PROCUNIT”.
For PRCs applied, accrual entries are recorded with a Standard Voucher document as
summarized in exhibit 02.
c. Unapplied PRCs from Closed Contracts. During the current fiscal year, timber
contracts are closed which may have PRCs that have not been applied by the
contractor toward timber the contractor has harvested. Through April FY 2006, the
remaining unapplied PRCs were recorded as Donated Revenue, but effective with
month-end May 2006, are reported as Earned Revenue. The TSA Report 926-01 “FY
XX Yearend TSPIRS Report (Closed Contracts Only)” column “FY XX C3701”
provides information. Note: This is a separate report from the one used for Applied
PRCs. For unapplied PRCs from closed contracts, accrual entries are recorded with a
Standard Voucher document as summarized in exhibit 03.
d. Established SRCs. Any road construction costs under timber contracts after April
1999 are recognized as revenue upon the acceptance of the roads by the Forest
Service. TSA Report 940-01 “SRD Cost Established for FY XX” provides the
information on the road construction costs incurred by the timber contractor during
the current fiscal year. Details about the accounting entries and postings are provided
in exhibit 04.
WO AMENDMENT 6509.11m-2007-1
EFFECTIVE DATE: 09/06/2007
DURATION: This amendment is effective until superseded or removed.
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CHAPTER 10 - ACCRUING EARNED REVENUE
12 - Exhibit 01
PRCs Established - Accrual Entry’s Information and Postings
Trans
Code/
Trans
Type
SV/NT
Fund Code(s)
CNEX - Construction
External Reimbursable
Or
SV/TI
CMEX - Construction
External Reimbursable
SV/NT,
SV/TI
N/A
Standard
General Ledger
Postings
Proprietary:
Debit: 1712
Improvements to
Land
Debit: 1740
Other Structures/
Facilities
Credit: 2320
Deferred Credits
Asset
Recorded
Revenue
Source Code;
Budget Object
Vendor
Code
Prism,
Culverts, and
Surface
FS
ACCRUAL
Bridges
0210
All Assets
Budgetary:
None
N/A
12 - Exhibit 02
PRCs Applied - Accrual Entry’s Information and Postings
Fund Code(s)
Trans
Code/
Trans
Type
Standard General
Ledger Postings
Vendor
Code
Or
Proprietary:
Debit: 2320 Deferred
Credits
Credit: 5100 Revenue
from Goods Sold
FS
ACCRUAL
CMEX - Construction
External Reimbursable
Budgetary:
None
CNEX - Construction
External Reimbursable
SV/RV
Revenue Source
Code; Budget
Object
0210
WO AMENDMENT 6509.11m-2007-1
EFFECTIVE DATE: 09/06/2007
DURATION: This amendment is effective until superseded or removed.
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FSH 6509.11m - SERVICEWIDE ACCRUAL HANDBOOK
CHAPTER 10 - ACCRUING EARNED REVENUE
12 - Exhibit 03
Unapplied PRCs from Closed Contracts –
Accrual Entry’s Information and Postings
Trans
Code/
Trans
Type
Fund Code(s)
Standard General
Ledger Postings
Vendor
Code
Or
Proprietary:
Debit: 2320 Deferred
Credits
Credit: 5100 Revenue
from Goods Sold
FS
ACCRUAL
CMEX – Construction
External Reimbursable
Budgetary:
None
CNEX – Construction
External Reimbursable
SV/RV
Revenue Source
Code; Budget
Object
0210
12 - Exhibit 04
Established SRCs - Accrual Entry’s Information and Postings
Fund Code(s)
CNEX –
Construction
External
Reimbursable
Trans
Code/
Trans
Type
SV/TM
SV/TB
Or
CMEX –
Construction
External
Reimbursable
SV/TM,
SV/TB
N/A
Standard General
Ledger Postings
Proprietary:
Debit: 1712
Improvements to
Land
Debit: 1740
Other Structures/
Facilities
Credit: 5100
Revenue from
Goods Sold
Budgetary:
None
Asset
Recorded
Vendor
Code
Revenue
Source Code;
Budget Object
Prism,
Culverts, and
Surface
Bridges
All Assets
N/A
FS
ACCRUAL
0210
WO AMENDMENT 6509.11m-2007-1
EFFECTIVE DATE: 09/06/2007
DURATION: This amendment is effective until superseded or removed.
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FSH 6509.11m - SERVICEWIDE ACCRUAL HANDBOOK
CHAPTER 10 - ACCRUING EARNED REVENUE
13 - ANNUAL ACCRUAL OF PERMIT FEES FOR SPECIAL USES, GRAZING AND
MINERALS
During the year, local Forest Service offices generate bills for special uses, grazing, and minerals
based on the terms of the respective permit, and collect fees in advance based on the standard
period of occupancy, January 1 through December 31. The permit billing and management
subsystems, the Special Uses Data System (SUDS) and INFRA-Range (accessed using I-Web)
stay open at month-end for October through August.
For month-end September, however, an accrual of permit fees for special uses, grazing, and
minerals is required for fiscal years in which SUDS and INFRA-Range close a few days before
September 30. During the few days prior to yearend, if any permit changes occur affecting the
amount of revenue billed and/or unbilled, then an accrual is necessary to ensure that all permit
fee revenue is correctly recorded during the period.
Descriptions of the activities generating the revenue and the quarterly accrual methodology are
as follows:
1. Activities Generating Revenue. Local Forest Service offices issue permits for the
following activities:
a. Grazing for various types of animals on designated tracts of National Forest
System lands and National Grasslands.
b. Special uses such as electricity transmission lines or oil and gas pipelines crossing
the forest. Many communications companies have special use permits for the
placement of antennas, microwave towers, and relay stations on mountain tops.
2. Annual Accrual Methodology.
a. After SUDS and/or INFRA Range close for the fiscal year, if any changes occur in
the fees or billings for special uses, grazing, or minerals, then the local Forest Service
offices must fax the information to the ASC-B&F Special Uses/Grazing section at the
fax number shown in the Fiscal Year Budget and Finance Annual Closing Procedures
(available on the following website: http://fsweb.r3.fs.fed.us/asc/bfm).
b. ASC-B&F uses the information to prepare and record an accrual in FFIS prior to
the close of business at yearend.
c. FFIS creates the reversal entry at the beginning of the subsequent month and the
ASC-B&F reviews and approves the reversal by the 10th day of that month.
d. The local Forest Service office must input the changes into SUDS and/or INFRA
Range during the subsequent month.
WO AMENDMENT 6509.11m-2007-1
EFFECTIVE DATE: 09/06/2007
DURATION: This amendment is effective until superseded or removed.
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See exhibit 01 for the transaction codes, transaction types, and standard general ledger postings
used for the accrual of permit fees for special uses and grazing.
13 - Exhibit 01
Annual Accrual of Permit Fees for Special Uses and Grazing:
Information and Postings
Fund Code(s)
5008 - National Forest
Fund Revenue
5896 - National
Grasslands Revenue
Trans
Code/
Trans
Type
SV/U1
Standard General
Ledger Postings
Proprietary:
Debit: 1312 Accounts
Receivable
Credit: 5100 Revenue
from Goods Sold
Budgetary:
None
Vendor
Code
Revenue Source
Code; Budget Object
FS
ACCRUAL
0105
WO AMENDMENT 6509.11m-2007-1
EFFECTIVE DATE: 09/06/2007
DURATION: This amendment is effective until superseded or removed.
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CHAPTER 10 - ACCRUING EARNED REVENUE
14 - ANNUAL ACCRUAL OF REVENUE FOR PLANT-A-TREE AND CHARACTER
LICENSING OF SMOKEY BEAR AND WOODSY OWL
The character licensing of Smokey Bear and Woodsy Owl receives earned revenues quarterly
with each 3-month remittance period specified in the license agreement.
Descriptions of the activities generating the revenue and the annual accrual methodology are as
follows:
1. Activities Generating Revenue.
a. Plant-A-Tree. Forest Service’s Plant-A-Tree program is a publicized offer to the
public. For a contribution of $10, a remitter may have a tree planted in memory of a
loved one, or to honor a person, or a special occasion such as a birthday; the Forest
Service issues a certificate to the contributor, commemorating the event. The monies
finance tree planting projects on National Forest System lands.
b. Smokey Bear and Woodsy Owl Character Licensing. The Forest Service has
statutory authority to issue licenses to private businesses to reproduce the images of
Forest Service’s characters, Smokey Bear and Woodsy Owl (FSH 6509.11g, chapter
60). The two types of character licenses are as follows:
(1) A single-use license fee is due when the license is signed.
(2) A regular-use license fee is a percentage of the licensee’s sales of Smokey
Bear or Woodsy Owl products. According to the license agreement, fees are due
every 3 months.
2. Annual Accrual Methodology. Annual accruals are processed for Plant-a-Tree
contributions and Smokey Bear and Woodsy Owl royalty revenue because the amount of
the receipts is relatively small and the accrual reporting is too great an administrative
burden for more frequent accruals.
a. Plant-A-Tree. No accrual is necessary for contributions from individuals because
they are recorded in daily business during the month using FTRS which is open and
available through the last day of each month. For private companies that make
routine contributions, an accrual is recorded for the amount estimated by the
Washington Office Forest Management Staff. In the absence of an estimate from the
Forest Management, the accrual estimate shall be an average of the previous 12
calendar months of actual contributions.
b. Smokey Bear and Woodsy Owl Character Licensing.
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(1) Single-Use Licenses. ASC-B&F OTC team shall contact the license
administrators to determine if there are any unpaid one-time use fees, or fees the
administrators have collected and not submitted for deposit. The amount of earned
revenue to be accrued for single-use licenses is the amount of unbilled fees plus fee
revenue on hand.
(2) Regular-Use Licenses. The ASC-B&F OTC team shall review all open licenses
and update the spreadsheet that: (a) lists each license with its respective historical
revenues, (b) summarizes actual royalty income received, and (c) calculates a
quarterly average of actual earned revenue.
See exhibit 01 for the transaction codes, transaction types, and standard general ledger postings
used for the accrual of revenue from Plant-A-Tree and character licensing of Smokey Bear and
Woodsy Owl.
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14 - Exhibit 01
Accruing Revenue from Plant-A-Tree and Character Licensing
Of Smokey Bear and Woodsy Owl: Information and Postings
Entry
Plant-a-Tree
Fund Code(s)
CWFS - Cooperative Work,
Forest Service (CWFS was
used in FY 2006 and prior
years.)
Trans
Code/
Trans
Type
SV/MS
CWF2 - Cooperative Work,
Non-Agreement Based
(CWF2 is used in FY 2007
and subsequent years.)
Smokey
And
Woodsy,
Royalties
Receivable
LPSB - Smokey Bear
Licensing
LPFL - Woodsy Owl
Licensing
SV/MS
Standard General
Ledger Postings
Vendor
Code
Revenue
Source
Code;
Budget
Object
Proprietary:
Debit: 1312
Accounts
Receivable
Credit: 5900
Other Revenue
Budgetary:
None
Proprietary:
Debit: 1312
Accounts
Receivable
Credit: 5900
Other Revenue
Budgetary:
None
FS
ACCRUAL
0105
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15 - ANNUAL ACCRUAL OF REVENUE COLLECTED BY THIRD PARTY VENDORS
To improve customer service to forest visitors, Forest Service enters into agreements with nongovernment third parties to sell Forest Service maps and recreation passes. These third parties
are local businesses such as sporting goods stores, gas stations, outfitter/guides, and convenience
stores who want to sell Forest Service recreation passes or maps as a convenience for their
customers. The arrangement is advantageous to the Forest Service because the private
businesses have longer daily business hours and are open on weekends. Third party vendors are
encouraged to purchase the recreation passes and maps, paying for them in advance. However,
because some small businesses (often sole proprietorships) cannot afford such an outlay, instead
of advance payment being collected, the Forest Service enters into consignment arrangements
with the small businesses.
Descriptions of the activities generating the revenue and the annual accrual methodology are as
follows:
1. Activities Generating Revenue. Private businesses local to the Forest Service office
enter into consignment agreements with the Forest Service for the sale of Forest Service
maps, recreation passes, Christmas tree tags, and other such items. The businesses
periodically remit the collections to the Forest Service in accordance with the provisions
of their agreement. Units shall instruct vendors to remit all collections in a timely
manner that allows the Forest Service office to record the actual revenue.
2. Annual Accrual Methodology. Annual accruals are processed for third party vendor
revenue because the amount of the receipts is relatively small, and the accrual reporting is
too great an administrative burden for more frequent accruals.
a. Units shall minimize the amount of receipts held by third party vendors by
establishing the vendors’ remittance dates as weekly at a minimum and every 14 days
as a maximum.
b. At yearend, units shall calculate the revenue accrual using the respective vendor’s
average daily collection amount, calculated from the last 2 months of receipts that the
vendor remitted to the Forest Service. Multiply the vendor’s average daily collection
amount times the number of days in the accrual period. Units shall submit the accrual
information to the ASC-B&F Receivables and Collections group in accordance with
the instructions in the Fiscal Year Budget and Finance Annual Closing Procedures
and Calendar, posted annually on the following website:
http://fsweb.r3.fs.fed.us/asc/bfm.
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c. ASC-B&F OTC team shall record the accrual entries submitted by field units.
Two examples of the transaction codes, transaction types, and standard general ledger
postings are shown in exhibit 01, one for the accrual of recreation receipts and one for
map sale revenue collected by third party vendors.
15 - Exhibit 01
Accruing Revenue For Receipts Collected By Third Party Vendors:
Information and Postings
Entry
No.
1.
2.
Fund Code(s)
FDFD Recreation Fees,
Forest Service
MAPS - Reproduction
and Sale of Maps to the
Public
Trans
Code/
Trans
Type
SV/MS
SV/MS
Standard General
Ledger Postings
Proprietary:
Debit: 1312
Accounts
Receivable
Credit: 5900
Other Revenue
Budgetary:
None
Proprietary:
Debit: 1312
Accounts
Receivable
Credit: 5900
Other Revenue
Budgetary:
None
Vendor
Code
FS
ACCRUAL
Revenue Source
Code; Budget
Object
0105
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16 - QUARTERLY ACCRUAL OF REIMBURSABLE REVENUE FOR INCIDENTRELATED
Forest Service is the performing agency for many reimbursable agreements pertaining to incident
response. The term “incident” applies to wildland fires, hurricane relief assignments, and other
such emergency-related work projects.
Descriptions of the activities generating the revenue and the quarterly accrual methodology are
as follows:
1. Activities Generating Revenue.
a. Cooperative Protection Agreements, Non-Federal. This section pertains to nonFederal cooperative protection agreements. Annually, Forest Service reviews
existing Cooperative Protection agreements established for incident support. New
cooperative agreements are negotiated if required to maintain readiness. Until an
incident occurs and the agreement is exercised, Forest Service records no financial
obligation for these agreements. Each agreement’s provisions document a timeline
for billings and cite the Federal statutes that authorize the cooperative fire activity.
The ASC-B&F Incident Finance (IF) team makes payments and is the agency staff
that generates billings for these agreements. The process steps to exercise a
cooperative agreement are as follows:
(1) A wildland fire incident occurs and the Dispatch Center generates a fire job code
in the interagency FireCode system. If the incident occurs within State (cooperator)
jurisdiction and the agreement’s “Forest Service Assist” block is checked, the letters
“PN” are used in the first two positions of the 6-position fire job code. Job code
positions 3 through 6 are a unique alpha-numeric identifier assigned to the incident.
The PN designation signifies that the incident is on non-Federal land or is under nonFederal jurisdiction according to agreements in place. Not all PNxxxx fire job codes
are reimbursable; Dispatch Centers must ensure that they correctly encode the
“Reimbursable/Billable” block in the FireCode system.
(2) ASC-B&F IF team distributes a spreadsheet monthly of all fire job codes to the
Regional Incident Administrative Coordinators so that field units can validate and
identify all reimbursable or cost share job codes.
(3) ASC-B&F IF team monitors all fire job codes identified by the field to determine
if the expenses are reimbursable based on the appropriate agreement.
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(4) ASC-B&F IF team obtains a financial management report quarterly, listing all
expenses for each fire job code. Reimbursable expenditures are summarized and
prepared for billing. If the fire job code was established in appropriated fund WFSU,
an expenditure accounting adjustment is required to position the expenses correctly
for billing purposes in reimbursable fund WFEX. Beginning July 1, 2006, State
“PNxxxx” job codes have reimbursable fund WFEX in their underlying accounting,
therefore no accounting adjustment is necessary.
(5) ASC-B&F IF team records quarterly, in FFIS, the initial bills for the preliminary
amounts summarized in step 1 (a) (4) above, however the bills are not mailed to
cooperators. The entries serve as accruals of estimated revenue during the Forest
Service’s process of confirming the charges. Until all expenses are recorded in the
FFIS accounting system, the preliminary bills continue to be modified quarterly to
keep the accrued revenue current.
(6) ASC-B&F IF team distributes the incident expense summaries to the field where
the designated officer, dispatchers, and/or fire manager will review, approve, sign,
and return the summaries to the ASC-B&F IF team. When the amounts are
confirmed, the ASC-B&F IF team modifies the existing bill’s amount, if necessary;
encloses supporting documentation (based on the agreement requirements); and mails
it to the cooperator.
(7) The Cooperator uses written communication to inform the local Forest Service
unit about any disputed charges, as outlined by the dispute clause in the agreement.
The Forest Service field unit shall investigate the disputed charges, negotiate with the
cooperator, and request ASC-B&F IF team adjust the billing as appropriate.
(8) The ASC-B&F IF team’s final billing occurs in a timely fashion.
b. Federal Emergency Management Agency (FEMA) Agreements. Forest Service’s
business relationship with FEMA is described in the National Response Plan (see
http://www.dhs.gov/xprepresp/committees/editorial_0566.shtm), and documented in
an interagency cooperative agreement. The Forest Service is the primary, or lead
agency for the National Response Plan’s Emergency Support Function #4 (ESF4), the
firefighting function. FEMA issues FEMA Form 90-129, Mission Assignment (MA),
to the Forest Service, identifying the work to be performed and specifying a dollar
limitation. However, FEMA does not expect Forest Service to be the sole agency
spending the authorized funds. Forest Service records no unfilled customer order,
based on the MA, because it is impossible to determine how much of the MA
limitation will be expended by the Forest Service. The process for billing FEMA
follows the steps outlined in paragraph 1 (a) (1) above, with the following exceptions:
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(1) Forest Service field Fire Staff requests ASC-B&F IF team establish the number of
job codes required for the emergency. The first position of the 6-position job code is
“F” to signify “FEMA.”
(2) ASC-B&F IF team obtains a financial management report from FFIS showing
expenses by job code. ASC-B&F IF team analyzes the report and identifies the actual
reimbursable expenses. Examples of items not reimbursable are base time and
agency-provided medical care.
(3) Once all the expenses have been identified, ASC-B&F IF completes, reviews, and
signs the Mission Assignment Reimbursement Request Transmittal form. ASC-B&F
IF team uses Treasury’s Intra-Governmental Payment and Collection network,
(IPAC) to bill FEMA. In addition, ASC-B&F IF team mails supporting
documentation to FEMA.
(4) ASC-B&F IF team bills FEMA incidents monthly as charges occur. Final bills
are issued in a timely manner when each mission assignment is closed out and all
expenses are recorded in FFIS.
2. Quarterly Accrual Methodology. ASC-B&F IF team prepares and enters a quarterly,
high level self-reversing revenue accrual. The accrual amounts are determined using a
financial management report which retrieves actual expenses from the Financial Data
Warehouse. The quarterly revenue accrual amount represents unbilled expenses incurred
after the previous billing cycle. For example, the billing cycle cuts off on the 20th of the
last month in the quarter, the revenue accrual would cover expenses incurred from the
21st through the end of the last month in the quarter.
For FEMA MAs, the revenue accrual amount is for unbilled delivered orders.
For the accrual transaction code, transaction type, and standard general ledger postings see
exhibit 01.
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16 - Exhibit 01
Accruing Reimbursable Revenue for Non-Federal Cooperative Fire Agreements and
Incident-Related Agreements: Information and Postings
Fund Code(s)
Trans
Code/
Trans
Type
WFEX - Wildland Fire
SV/PJ
External Reimbursements
Standard General Ledger
Postings
Proprietary:
Debit: 1310 Accounts
Receivable
Credit: 5200 Revenue
From Services Provided
Budgetary:
Debit: 4251 Reimbursable
and Other Income Earned,
Receivable
Credit: 4210 Anticipated
Reimbursable and Other
Income
Vendor
Code
FS
ACCRUAL
Revenue Source
Code; Budget
Object
0250
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17 - ACCRUAL OF REIMBURSABLE REVENUE FOR NON-INCIDENT RELATED
AGREEMENTS
Forest Service uses the FFIS Project Cost Accounting System (PCAS) for the non-incident
related agreements’ accounting. PCAS automates the processes for billing, liquidation of
advances, and the assessment/adjustment of indirect costs. Agreements with an approved
exception (such as complex agreements with multiple partners) are managed in a non-PCAS
environment. Revenue is recorded as earned on both PCAS and non-PCAS agreements when a
reimbursable billing document (transaction codes BP or BD) is recorded or when an advance is
liquidated (transaction code PS) upon performance of work. The majority of revenue recognition
is initially achieved by these billing or advance liquidation transactions. Advances are liquidated
monthly as work is performed, evidenced by paid and unpaid expenditures. For reimbursable
collections, the frequency of billing varies depending on the identity of the Forest Service’s
cooperator and the terms of the agreement. A revenue accrual is necessary only when unbilled
expenditures exist at fiscal quarter-end reporting periods for which a billing will not be issued.
Accounts with unbilled expenditures occur under the following circumstances:
1. Non-federal partners not billed at least quarterly;
2. Federal partners under an approved exception to bill less frequently than quarterly; or
3. Agreements where a billing will not be produced at the quarterly interval for reasons
such as:
(a) System constraints when the billing parameters and billing interval conflict,
(b) High level payment accruals not recorded at the agreement level,
(c) Early PCAS cutoff date at fiscal yearend.
17.1 - General Information about Accruing Revenue for Non-Incident
Reimbursable Agreements
The complete accounting procedure for non-incident reimbursable agreements is set forth in
FSH 6509.11k, chapter 50. The following is a summary of billing requirements, important to
note because billed expenditures are not subject to a revenue accrual:
1. USDA and Non-USDA Federal Cooperators. Unless the agreement is an approved
exception, billing is required at least quarterly. Exceptions are approved on a case-bycase basis by the ASC-B&F Reimbursable and Collection Agreements (RACA) Branch
Chief with consultation as necessary with WO Financial Management Policy staff.
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2. Non-Federal Cooperators. A monthly billing cycle is Forest Service’s preferred
billing frequency for agreements with non-federal partners. However, when monthly
billings are not possible, a less frequent billing cycle may be negotiated, with a billing
required annually at the end of each fiscal year. Agreement terms must address the
applicable billing frequency. To achieve the necessary recognition of revenue, when a
billing is issued less frequently than quarterly, a revenue accrual must be recorded each
quarter-end financial statement reporting period by the ASC-B&F RACA Branch.
3. Both Federal and Non-Federal Cooperators. At the end of each fiscal year, the USDA
sets a cut-off date for PCAS processes to accommodate the Intradepartmental Transaction
Reconciliation System (ITRS) reconciliation of agreements between USDA agencies.
This early PCAS cycle would result in the billing for expenditures recorded after the cutoff date, otherwise subject to 4th quarter billing, to be delayed until the first PCAS bill
cycle of the subsequent fiscal year. If the cut-off date is more than 5 days from the end of
the fiscal year, the Director of ASC-B&F shall determine if the anticipated reimbursable
revenue amount is material, based on a documented analysis of expenditures during this
period and other contributing factors. If expenditures are deemed material or if the
accrual for these unbilled expenditures could be easily incorporated into the accrual for
another reimbursable revenue accrual category, a manual revenue accrual must be
calculated and recorded; otherwise, no revenue accrual will be required.
An example of the transaction code, transaction type, and standard general ledger postings are
shown in exhibit 01.
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17.1 - Exhibit 01
Accruing Reimbursable Revenue for Non-Incident-Related Agreements:
Information and Postings
Sample
Fund Code(s)
Trans
Code/
Trans
Type
Standard General
Ledger Postings
Vendor Code
Revenue
Source
Code;
Budget
Object
NFEX - National Forest
System External
Reimbursements
YE/UB
SPEX - State and Private
Forestry External
Reimbursements
FREX - Forest Research,
External Reimbursements
CMEX - Construction,
External Reimbursements
WFEX - Wildfire
Management, External
Reimbursements (nonincident related)
LAEX - Land Acquisition,
Land & Water, External
Reimbursements
Proprietary:
Debit: 1310
Accounts Receivable
Credit: 5200
Revenue From
Services Provided
Budgetary:
Debit: 4251
Reimbursable and
Other Income
Earned, Receivable
Credit: 4221
Unfilled Customer
Orders Without
Advance
For non-Federal
partners,
“FS ACCRUAL”
The Common
Agreement Number
(CAN)
for USDA agencies.
The Vendor Code
representing the
parent-level Agency
Location Code (ALC)
for non-USDA
agencies.
0250
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17.2 - Methodology for Determining Revenue Accruals for Non-Incident
Reimbursable Agreements
The accrued revenue for non-incident reimbursable agreements is composed of 5 possible
categories, depending on the make-up of the whole body of active agreements on the financial
statement cut-off date. Those 5 possible segments are as follows:
1. A summary-level accrued revenue entry equal to the actual unbilled expenditures
recorded in individual PCAS agreements (sec. 17.21).
2. A summary-level accrued revenue entry equal to the estimated accrued unbilled
expenditures recorded at a high level (BFY/Fund/Program) and not to individual PCAS
agreements. The accrued expenditures are estimated using the statistical methodology
described in Chapter 20, as executed by ASC B&F Service-Wide Accounts Maintenance
(SWAM) Branch (sec. 17.22).
3. A summary level accrued revenue entry equal to the unbilled actual expenditures
recorded temporarily at yearend by the ASC-B&F Budget Execution staff, based on
advice from field units. The temporary recognition of these actual expenditures is
described in the Budget and Finance Annual Closing Procedures (sec. 17.23).
4. Separate agreement/project-specific accrued revenue entries for certain sensitive
PCAS agreements (sec. 17.24).
5. Separate project level accrued revenue entries for non-PCAS agreements (sec. 17.25).
Specific details describing the steps for determining revenue accrual amounts and data elements
are available in the ASC-B&F RACA Branch’s Operating Procedures.
The defining features of each category are set forth in the following subsections.
17.21 - Actual Unbilled Expenditures Recorded in PCAS Agreements
The amount of unbilled expenditures in each of the 3 sub-categories (described below) may be
immaterial in and of themselves, but the analysis method captures all subcategories and
incorporates all costs to achieve the most complete accrual.
A summary level accrual shall be recorded for unbilled expenditures in non-incident-related
PCAS reimbursable accounts, at the end of each financial statement reporting period, as follows:
1. For all agreements in PCAS with billing cycles that don’t coincide with Forest Service
financial statement reporting dates. PCAS billing cycle codes are displayed in exhibit 01.
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2. For any of the cycles where a bill will not be issued because the Last Bill Date falls
within the affected bill cycle interval causing the agreement to be overlooked by the
PCAS billing cycle. A revenue accrual is needed if ASC-B&F employees did not
mitigate the occurrence of these timing issues by manually creating a bill or changing the
PCAS bill cycle so that PCAS creates the bill.
3. For unbilled expenditures recorded at the agreement level detail in late September,
after the PCAS cut-off date but before September 30. The cut-off date is determined each
year by USDA Office of the Chief Financial Officer (OCFO) and published in the USDA
yearend close-out instructions.
Additional information about the accrual entry is displayed in exhibit 02.
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17.21 - Exhibit 01
PCAS BILLING CYCLE CODES
PCAS
Cycle
Billing Frequency
Code
M
Monthly
Q
Quarterly
(end of December, March,
June, September)
S
Semi-annual
(end of March, September)
A
Annual
(end of September)
E
End of Project
Accrual Needed for Reimbursable Revenue
Yes or No
No
No
Yes, accrue at December and June financial statement
reporting dates
Yes, accrue at December, March, and June financial
statement reporting dates
Yes, accrue at December, March, June, and September
financial statement reporting dates
17.21 - Exhibit 02
Additional Information About the Summary Level Entry
for Unbilled Expenditures in PCAS Agreements
Accounting Level
Timing
Reversal
The related revenue accrual
shall be recorded in region
17 unit 01 at the
BFY/fund/program level.
The entry of accrued revenue
occurs 2-3 days prior to the
end of the quarter for the first
three quarters. For the fourth
quarter, the entry occurs
between the PCAS cut-off
date and the end of the
quarter.
The revenue accrual shall be
reversed within the first 10 days
of the subsequent accounting
period. For the 4th quarter or
Period 13 accrual, the reversal is
made in the 1st accounting period
of the new fiscal year.
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17.22 - Statistically Estimated Unbilled Expenditures Not Recorded in PCAS
Agreements
A summary-level accrued revenue entry shall be prepared for the amount of accrued
expenditures unpaid that is estimated using a statistical accrual methodology, managed by ASCB&F Service-Wide Accounts Maintenance (SWAM) Branch (Chapter 20). The accrual is
recorded at a high level (BFY/Fund/Program) and not to individual PCAS agreements
Accrued revenue shall be recorded for unbilled estimated accrued expenditures in non-incidentrelated reimbursable accounts, at the end of each financial statement reporting period, as follows:
1. A high-level statistical methodology generates accrued estimated expenditures at the
end of each quarter. When this methodology produces an entry in reimbursable funds, a
manual accrual of revenue related to those estimated accrued expenditures must be
recorded. The manual entry is necessary because the estimated accrued expenditures are
not recorded at the agreement level detail which would allow PCAS to perform the
billing process.
2. The accrual for unbilled estimated accrued expenditures undergoes a materiality
analysis by fund and program before it is recorded. Therefore, the funds related to the
PCAS agreements must be in sufficient amounts to pass that materiality analysis,
otherwise, those funds will have no estimated expenditures accrued and there will be no
related accrued revenue.
3. The revenue accrual is contingent upon the level of accounting detail provided in the
backup support to the statistical accrual analysis. For example, accruals for non-Federal
reimbursables can be identified by the program codes NFXN, FRXN, and so forth. These
accruals are recorded at vendor summary code level, FS ACCRUAL. For Federally
funded reimbursables, citing program codes NFXF, FRXF, and so forth, job code level
detail is required to enable the determination of the funding customer. Federal revenue
must be recorded at vendor level detail to enable intra-governmental elimination entries.
Additional information about the accrual entry is displayed in exhibit 01.
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17.22 - Exhibit 01
Additional Information About the Summary Level Accrued Revenue Entry
for Statistically Estimated Unbilled Expenditures Not in PCAS Agreements
Accounting Level
The related revenue accrual
shall be recorded in region 17
unit 01 at the
BFY/fund/program level.
Timing
Reversal
The entry of
accrued revenue
occurs 1-3 days
prior to the end of
the quarter.
The revenue accrual shall be reversed
within the first 10 days of the subsequent
accounting period. For the 4th quarter or
Period 13 accrual, the reversal is made in
the 1st accounting period of the new fiscal
year.
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17.23 - Actual Unbilled Expenditures Not Recorded in PCAS Agreements
This summary level revenue accrual entry occurs only when the Forest Service makes fiscal
year-end entries to temporarily recognize actual expenditures that weren’t recorded in the
standard way in time for yearend cut-off. At fiscal yearend, some actual expenditures are not
recorded in the standard way because of the timing of the transactions and the related computer
systems’ yearend cut-off dates. These unbilled actual expenditures are transactions such as the
following:
1. Purchase card purchases (goods and services delivered) that haven’t appeared yet in
the Purchase Card Management System (PCMS),
2. The current year portion of unfinished travel that crosses accounting periods,
3. Rejected Integrated Acquisition System (IAS) transactions, and
4. Employee cash awards not processed in time for entry into the standard accounting
system.
In accordance with the Annual Yearend Closing Instructions, units submit documentation for
these transactions and the ASC-B&F Budget Execution staff records them using standard
vouchers.
Depending on volume, Budget Execution may record these expenditures at the region, unit, job
code level or the region, unit, program code level. Any of these expenditures recorded at the job
code level will have their related revenue accrual prepared using the methodology in
section 17.21 instead of section 17.23. However, if any of the expenditures are recorded to a
high level such as BFY/fund/program, a manual revenue accrual equal to those expenditures is
recorded if deemed material. The manual entry is necessary because the expenditures are not
recorded at the agreement level detail which would allow PCAS to perform the billing process.
The ASC B&F RACA Branch Chief shall coordinate with other ASC B&F staffs regarding the
volume of these actual expenditures and the program accounting codes affected, to determine if
any revenue accrual is necessary. If so, a summary-level revenue accrual entry equal to the
actual unbilled expenditures shall be recorded at a high level (BFY/Fund/Program) and not to
individual PCAS agreements.
Additional information about the accrual entry is displayed in exhibit 01.
WO AMENDMENT 6509.11m-2007-1
EFFECTIVE DATE: 09/06/2007
DURATION: This amendment is effective until superseded or removed.
6509.11m_10
Page 33 of 35
FSH 6509.11m - SERVICEWIDE ACCRUAL HANDBOOK
CHAPTER 10 - ACCRUING EARNED REVENUE
17.23 - Exhibit 01
Additional Information About the Summary Level Revenue Accrual Necessary Due to
Manual Temporary Entry of Actual Expenditures
Accounting Level
Timing
Reversal
The related revenue
accrual shall be recorded
at the same accounting
level used for the
temporary entry of the
actual expenditures.
The entry of accrued revenue
occurs 1-3 days prior to the end of
the quarter. If an obligation
recorded in Period 13 is materially
significant to warrant a revenue
accrual, the revenue accrual entry
occurs prior to the Period 13 cutoff date.
The revenue accrual shall be
reversed within the first 10 days
of the subsequent accounting
period. For the 4th quarter or
Period 13 accrual, the reversal
is made in the 1st accounting
period of the new fiscal year.
WO AMENDMENT 6509.11m-2007-1
EFFECTIVE DATE: 09/06/2007
DURATION: This amendment is effective until superseded or removed.
6509.11m_10
Page 34 of 35
FSH 6509.11m - SERVICEWIDE ACCRUAL HANDBOOK
CHAPTER 10 - ACCRUING EARNED REVENUE
17.24 - Agreement/Project Specific Entries for Sensitive PCAS Agreements
Accrued revenue shall be recorded for unbilled expenditures in that small portion of PCAS
agreements that require entries to be recorded at the agreement-level detail. These agreementspecific revenue accruals are essential to maintain special tracking and handling of high-profile,
large-dollar agreements such as that with the Bureau of Land Management for conservation work
mandated by the Southern Nevada Public Lands Management Act.
Additional information about the accrual entry is displayed in exhibit 01.
17.24 - Exhibit 01
Additional Information About the Separate Agreement/Project-Specific Entries
for Certain Sensitive PCAS Agreements
Accounting Level
The related revenue accrual shall be
recorded at project level detail
(Region/Unit and Job Code) with
agreement number in description field.
Timing
Reversal
The entry of accrued
revenue occurs 2-5
days prior to the end of
the quarter.
The revenue accrual shall
be reversed at the time the
actual billing is processed.
WO AMENDMENT 6509.11m-2007-1
EFFECTIVE DATE: 09/06/2007
DURATION: This amendment is effective until superseded or removed.
6509.11m_10
Page 35 of 35
FSH 6509.11m - SERVICEWIDE ACCRUAL HANDBOOK
CHAPTER 10 - ACCRUING EARNED REVENUE
17.25 - Separate Project-Level Accrued Revenue Entry for Non-PCAS Agreements
Accrued revenue shall be recorded for unbilled expenditures in that small portion of agreements
that are not managed by the PCAS system. Additional information about the accrual entry is
displayed in exhibit 01.
17.25 - Exhibit 01
Additional Information About the Separate Project Level Entry
for Non-PCAS Agreements
Accounting Level
Timing
The related revenue accrual shall
be recorded at project level detail
(Region, Unit, and Job Code).
The entry of accrued
revenue occurs 2 to 5 days
prior to the end of the
quarter.
Reversal
The revenue accrual shall be
reversed at the time the actual
manual billing is processed.