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Office of Financial Management Services
Auxiliary Accounting |
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Auxiliary Standard Operating Procedures
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| SUBJECT: |
Prior Year Balance Sheet Adjustments (4999) |
| SOURCE: |
Auxiliary Accounting Department, FMS |
ORIGINAL DATE
OF ISSUE: |
March, 2006 |
| ASOP NO: |
11.0 |
| RATIONALE: |
To provide guidelines for determining the necessity of, and proper procedures for recording prior year balance sheet adjustments. |
| ASOP: |
Object code 4999 should be used for adjustments made to prior fiscal year activity. The exception is for bad debt expense, which is not a prior year adjustment. Object code 4999 is to be used for prior fiscal year activity and not prior period activity. Under no circumstance should 4999 be used for current year adjustments. The fiscal officer must contact their Campus Administrator and auxiliary consultant in FMS if they feel adjustment of a prior year balance is necessary. The entry must then be recorded as an auxiliary adjustment (AVAD). This entry will then be routed to Auxiliary Accounting for approval.
For example, if after fiscal year end it is determined that the inventory amount recorded is higher than a physical count, completion of a prior year balance sheet adjustment using object code 4999 is necessary.
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Object
Code |
Debit |
Credit |
| AVAD |
Balance Sheet Adjustment |
4999 |
$xxxx |
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Inventory |
83xx |
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$xxxx |
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RESPONSIBLE
ORGANIZATION: |
Financial Management Services |
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