MISSOULA CAMPUS
FISCAL YEAR END PROCEDURES
DEFERRED REVENUE
DEFINITION
Deferred revenue is revenue collected in the current fiscal year that will be earned in the next fiscal year. This revenue
is reported as a liability on the current year’s balance sheet and as revenue in the next fiscal year. Departments that
record deferred revenue include, but are not limited to: Continuing Education, Bio Station, Dining Services, Athletics,
Campus Recreation, and Residence Life. Summer session tuition and fees collected prior to July 1st are also recorded
as deferred revenue per Montana University System policy.
PROCEDURES
1. General Guideline for Recording Deferred Revenue:
 For ease of processing deposits, please use a separate deposit line for deferred revenue transactions!
 Deferred Revenue must be recorded with an activity code. See attached list for current activity codes. Please
contact your fund accountant if a new activity code needs to be established. The activity code is the revenue
account code with the ‘5’ replaced by an ‘R’ – For example, the activity code for revenue account code 50404Auxiliary Campus Recreation would be R0404.
 Balance sheet account number is 2505 – Deferred Revenue.
Example Transaction:
Campus Recreation has a raft trip scheduled for July 17th. A registration payment is sent to Campus Recreation
(index code MCR813) and is received on June 21st.
Record Deposit Using Banner Departmental Deposit Form (WFADPST)
Form Completion Steps:
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Check the box next to “Check if New Entry,” this will give a deposit number for Treasury to reference
Control-page down to the center of form.
Updated April 2016
MISSOULA CAMPUS
FISCAL YEAR END PROCEDURES
DEFERRED REVENUE
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For the Detail Code, enter “FOAP”; tab to the Index field to enter account index; tab to the Account field
and enter the Deferred Revenue account 2505; tab to the Activity field and enter the revenue code with the
first number replaced by ”R”; in our example, 50404- Auxiliary Recreation trip fee income activity code
would be R0404.
In the “Dr/Cr” field, select “Cr”; in the “Amount” field enter the amount for this deposit.
Once done entering deposit activity, control-page down to complete the deposit summary section. For each
deposit type, please select “Dr,” and then enter the amount.
Save the information and then print two copies. One copy is for your reference and the other is to be brought
to Treasury when depositing the funds.
Record Deposit Using the Departmental Deposit Card (manual process)
2. Banner Student A/R
 Summer session tuition and fees recorded in the Banner Student System with a term based detail code will
automatically be coded as deferred revenue in the current fiscal year. Any detail code that is designated as
"term based" will have an account code of 2505 AND an activity code of Rxxxx. This combination of account
and activity will ensure the proper recording of deferred revenue.
3. Business Services Review
 Prior to FYE Business Services will review the deferred revenue activity to ensure an activity code is included
in the transaction. In July of the new fiscal year, Business Services will reverse deferred revenue to the revenue
accounts determined by the activity code indicated on the fiscal year end deposit form/card.
DepartmentsPlease contact Luanne Felstet, Accounting Services, ext. 2499 for any questions or concerns regarding this
procedure.
Note-Refunds relating to deferred revenue must be so noted on document
.
Updated April 2016