State Pass-Through Activities Tutorial
Lesson 3: Error Correction
Correction of State Pass-Through Revenues
This section covers entries related to the correction of revenue AGL and COBJ and describes entries necessary to correct GAAP and D23 fund.
Correcting Blank/Incorrect Revenue AGL or COBJ
The process to correct a revenue essential in the correction of AGL or COBJ is similar. However, the procedure is different for the revenue corrections entered before Aug. 31, 20CY and those entered after Aug. 31, 20CY because cash transactions cannot be backdated. The following tables illustrate this process in chronological order.
If the entries are recorded before Aug. 31, 20CY:
| Seq No | Batch Type | Doc Type | Eff Date | Fin Agy | TC | R | AY | PCA | COBJ | Amount | Vendor No | AGL | Input GL | USAS D23 Fund |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| To Reverse the Original Revenue with a Blank/Incorrect AGL or Incorrect COBJ | ||||||||||||||
| (1) | 5,8 | J | Current Date |
XXX | 406 | XX | XXXXX | Incorrect COBJ |
$ XX.XX | N/A | Blank or Incorrect AGL | N/A | XXXX | |
| To Record the Pass-Through Revenue with the Correct AGL or COBJ | ||||||||||||||
| (2) | 5,8 | J | Current Date |
XXX | 405 | XX | XXXXX | Correct COBJ | $ XX.XX | N/A XXXXXX |
Correct AGL | N/A | XXXX | |
Note: For revenue corrections recorded before Aug. 31, 20CY, the AGL number must be input on the lines of entry that include pass-through COBJs unless the original transaction had a pass-through COBJ and a blank AGL. If changing from one pass-through COBJ to another, both lines must have the AGL. If changing from a pass-through COBJ to a non-pass-through COBJ, the AGL must be entered on the first line of entry.
Accounting effect of revenue entries recorded before Aug. 31, 20CY
| Debit | Credit | ||
|---|---|---|---|
| (1) | To Reverse the Original Revenue with a Blank/Incorrect AGL or COBJ | ||
| 5000 Revenue Control — Cash | $ XX.XX | ||
| 0045 Cash in State Treasury | $ XX.XX | ||
| (2) | To Record the Pass-Through Revenue with the Correct AGL or COBJ | ||
| 0045 Cash in State Treasury | $ XX.XX | ||
| 5000 Revenue Control — Cash | $ XX.XX |
If the entries are recorded after Aug. 31, 20CY:
| Seq No | Batch Type | Doc Type | Eff Date | Fin Agy | TC | R | AY | PCA | COBJ | Amount | Vendor No | AGL | Input GL | USAS D23 Fund |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| To Accrue a Reversal of an Original Revenue with a Blank/Incorrect AGL or Incorrect COBJ | ||||||||||||||
| (1) | 4,5,8 | J | 0832CY | XXX | 465 | R | XX | XXXXX | Incorrect COBJ |
$ XX.XX | XXXXX XXXXXX |
Blank or Incorrect AGL | N/A | XXXX |
| To Accrue and Record a Pass-Through Revenue with the Correct AGL or COBJ | ||||||||||||||
| (2) | 4,5,8 | J | 0832CY | XXX | 465 | XX | XXXXX | Correct COBJ | $ XX.XX | XXXXX XXXXXX |
Correct AGL | N/A | XXXX | |
Note: For revenue corrections recorded after Aug. 31, 20CY, the AGL number must be input on the lines of entry that include pass-through COBJs unless the original transaction had a pass-through COBJ and a blank AGL. If changing from one pass-through COBJ to another, both lines must have the AGL. If changing from a pass-through COBJ to a non-pass-through COBJ, the AGL must be entered on the first line of entry.
| Debit | Credit | ||
|---|---|---|---|
| (1) | To Accrue a Reversal of an Original Revenue with a Blank/Incorrect AGL or COBJ | ||
| 5001 Revenue Control — Accrued | $ XX.XX | ||
| 0279 Interfund Receivable — Current | $ XX.XX | ||
| (2) | To Accrue and Record a Pass-Through Revenue with the Correct AGL or COBJ | ||
| 0279 Interfund Receivable — Current | $ XX.XX | ||
| 5001 Revenue Control — Accrued | $ XX.XX |
Note: T-code 465 posts as of the effective date of this transaction and generates a cash entry (T-code 469) that posts on the system management date. If this entry is backdated, the generated entry posts in the next reporting period.
Correcting GAAP and D23 Fund on Pass-Through Revenues
Sometimes at the fiscal year-end, an agency discovers an error in the D23 fund and/or GAAP fund related to a pass-through transaction that was coordinated and in balance with the other agency. No entry is required by the Comptroller’s office if the incorrect D23 fund and the correct D23 fund are both within the same GAAP fund, although the agency may choose to do a correction entry for internal purposes. However, an entry is required if the GAAP fund is incorrect. In both situations, the Comptroller’s office recommends that agencies make the correction within their own agency to avoid having to re-coordinate with the other agency.
If the D23/GAAP fund is the only error, the agency may leave the pass-through due from/due to as is and run the GAAP fund adjustment through other revenues/other operating revenues using COBJ 3970 outlined as follows:
If the entries are recorded after Aug. 31, 20CY between different GAAP funds:
| Seq No | Batch Type | Doc Type | Eff Date | Fin Agy | TC | R | AY | PCA | COBJ | Amount | Vendor No | AGL | Input GL | USAS D23 Fund |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| To Accrue a Reversal of an Original Revenue with an Incorrect D23 Fund & GAAP Fund | ||||||||||||||
| (1) | 4,5,8 | J | 0832CY | XXX | 465 | R | XX | XXXXX | 3970 | $ XX.XX | XXXXX XXXXXX |
N/A | N/A | Incorrect D23 Fund |
| To Accrue and Record a Revenue with the Correct D23 Fund & GAAP Fund | ||||||||||||||
| (2) | 4,5,8 | J | 0832CY | XXX | 465 | XX | XXXXX | 3970 | $ XX.XX | XXXXX XXXXXX |
N/A | N/A | Correct Fund | |
| To Record a Due To in the Incorrect D23 Fund | ||||||||||||||
| (3) | 8 | U | 0832CY | XXX | 663 | XX | 9999 | N/A | $ XX.XX | N/A | XXXXXXX0 | 1053 | Incorrect D23 Fund | |
| To Record a Due From in the Correct D23 Fund | ||||||||||||||
| (4) | 8 | U | 0832CY | XXX | 662 | XX | 9999 | N/A | $ XX.XX | N/A | XXXXXXX0 | 0279 | Correct Fund | |
| To Eliminate System Clearing Created in Step 3 | ||||||||||||||
| (5) | 5 | U | 0832CY | XXX | 646 | XX | 9999 | N/A | $ XX.XX | N/A | XXXXXXX0 | 0279 | Incorrect D23 Fund | |
| To Eliminate System Clearing Created in Step 4 | ||||||||||||||
| (6) | 5 | U | 0832CY | XXX | 647 | XX | 9999 | N/A | $ XX.XX | N/A | XXXXXXX0 | 0279 | Correct Fund | |
Accounting effect of entries recorded after Aug. 31, 20CY between different GAAP funds
| Debit | Credit | ||
|---|---|---|---|
| (1) | To Accrue a Reversal of an Original Revenue with an Incorrect D23 Fund & GAAP Fund | ||
| 5001 Revenue Control — Accrued | $ XX.XX | ||
| 0279 Interfund Receivable — Current | $ XX.XX | ||
| (2) | To Accrue and Record a Revenue with the Correct D23 Fund & GAAP Fund | ||
| 0279 Interfund Receivable — Current | $ XX.XX | ||
| 5001 Revenue Control — Accrued | $ XX.XX | ||
| (3) | To Record a Due To in the Correct D23 Fund | ||
| 9999 System Clearing | $ XX.XX | ||
| 1053 Due To Other Funds | $ XX.XX | ||
| (4) | To Record a Due From in the Correct D23 Fund | ||
| 0283 Due From Other Funds | $ XX.XX | ||
| 9999 System Clearing | $ XX.XX | ||
| (5) | To Eliminate System Clearing Created in Step 3 | ||
| 0279 Interfund Receivable — Current | $ XX.XX | ||
| 9999 System Clearing | $ XX.XX | ||
| (6) | To Eliminate System Clearing Created in Step 4 | ||
| 9999 System Clearing | $ XX.XX | ||
| 0279 Interfund Payable — Current | $ XX.XX |
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