Re: Invoice payment -- "general accounting practice"

Hi Dung-Lan,

Our Accounts Payable used to do the same thing and it was a budgetary nightmare. However, they have ceased using this accounting method and it is now much more simple and straightforward. By now they probably have their minds made up about this, but it might be worthwhile to send them an email requesting they do not use this formula.

Kind regards,

Jacob

Jacob Nunnally, MA, MLS
Content Management Librarian
New York Medical College
Health Sciences Library
Valhalla, NY 10595
914-594-3172

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Subject: Re: [ACQNET-L] Invoice payment -- "general accounting practice"

Hello Dung-Lan,

Our Accounting office does not do this. They do require that we report funds spent in FY16 for issues/access received in FY17, but that's just an auditor's report that is compiled as part of our fiscal close.

So, if they are paying the $1200 subscription in FY16, are they somehow reducing your budget for FY17 to accommodate what sounds like 'borrowing' from the FY17 budget?

I've been in serials acquisitions for years, in two different states, and have never heard of such practice. Will be interesting to hear if others are experiencing the same 'general accounting practice'.

That may work in certain sectors or businesses, but it could be debilitating in a library environment. Over 80% of our budget is for continuing resources (databases, e-serials, print serials, etc.) and it would take quite a bit of effort to enter the next fiscal year information in our ILS. Not all of our resources are on a calendar year subscription basis either; most of our databases, in fact, are not, so it is not a simple formula I could apply.

Nancy

Nancy Chaffin Hunter
970-491-1847
nancy.hunter_at_colostate.edu<mailto:nancy.hunter_at_colostate.edu>

From: ACQNET-L [mailto:acqnet-l-bounces_at_lists.ibiblio.org] On Behalf Of acqnet-l_at_lists.ibiblio.org<mailto:acqnet-l_at_lists.ibiblio.org>
Sent: Wednesday, November 18, 2015 8:27 AM
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Subject: [ACQNET-L] Invoice payment -- "general accounting practice"

Hi all,

I am hoping to find out if your institution's Accounting Office is doing something similar to what our College's Financial Services Office calls "general accounting practice."  Recently, we were informed by our Financial Services Office that payments for renewals/subscriptions will come out of our budget matching exactly when the subscription term takes place.   Our fiscal year starts June 1 and ends May 31 the following year.

Say we just a renewal invoice for database subscription for 01/01/2016 - 12/31/2016 that is billed at 1200.00 for the renewal.  Our Accounts Payable is now splitting the $1200 into two fiscal year because the subscription period falls into two separate fiscal years.  So this is what they are doing now - they split the total into two amounts by charging five months of the subscription (Jan. 1 - May 31, 2016), $500 against current fiscal year budget.  And holding $700.00 to be put against next fiscal year which it starts on June 1, 2016.    They would still pay the whole bill in full $1200 to the vendor/provider.   So basically at the Library we have to invoice $500 for current fiscal year in our ILS and set a reminder to invoice the other $700 when new fiscal year starts in June.    We've never had to invoice this way for the past 12 years since I've been here until very recently.   The Accountant in our Financial Services Dept. called this as a "General Accounting Practice."    I was wondering how general this practice really is as she calls it  and if any other institution's Accounting Office/Dept. is doing something similar?   I guess I'm looking for endorsement to this "general accounting practice" to lower my blood pressure ... sigh!

Thanks in advance for any information you are willing to share!

Best,
Dung-Lan

*********************************************
Dung-Lan Chen
Bibliographic Services/Acquisitions Librarian
Lucy Scribner Library
Skidmore College
815 N. Broadway
Saratoga Springs, NY 12866
Voicemail: 518-580-5511
Fax: 518-580-5541
Email: duchen_at_skidmore.edu<mailto:duchen_at_skidmore.edu>
*********************************************



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