Date: Thu, 19 Nov 2015 13:27:07 +0000
To: "acqnet-l_at_lists.ibiblio.org" <acqnet-l_at_lists.ibiblio.org>
Hi all – My understanding (not being an accountant!) is that it should really be capitalized “General Accounting Practice” as in “Generally Accepted Accounting Principles (GAAP)”. Those of you who are serialist will remember that standing order title from years past, perhaps! Part of GAAP is an accounting standard that has to do with paying for transactions in the year in which they actually are received/service is delivered. So if you are on a fiscal year July-June, you should only be paying for transactions that you “receive” in that time period. Our Budget Office implemented this 7-8 years ago here. We reconcile it just before fiscal close so if extra money is due to us, we can spend it before the end of year. (Likewise, if we “owe” the University money, we have to reconcile that before the end of year.) And my understanding was that it was implemented as a result of an auditor recommendation. So it really is an industry standard that auditors look at. They aren’t trying to make our lives more difficult – I don’t think! janet Janet B. Morrow Head, Resource & Discovery Services Northeastern University Libraries 360 Huntington Avenue 260 Snell Library Boston, MA 02115 j.morrow_at_neu.edu<mailto:j.morrow_at_neu.edu> 617-373-4959 [cid:828F9036-16F3-4751-97D4-D48023519AC3] From: ACQNET-L [mailto:acqnet-l-bounces_at_lists.ibiblio.org] On Behalf Of acqnet-l_at_lists.ibiblio.org Sent: Wednesday, November 18, 2015 4:45 PM To: acqnet-l_at_lists.ibiblio.org Cc: Scharstein, Salter Subject: Re: [ACQNET-L] Invoice payment -- "general accounting practice" Hi all. I'm curious to know what the point is of said "general accounting practice"? Can anyone explain the reasoning for keeping the accounts this way, besides creating, " a lot of extra record-keeping!"? Does it save money in each fiscal year doing this "general accounting practice"? Or is it a more accurate picture of what is truly spent within a fiscal year by keeping the books in this manner? Thank you. -Carol Kornhauser On Wed, Nov 18, 2015 at 2:35 PM, <acqnet-l_at_lists.ibiblio.org<mailto:acqnet-l_at_lists.ibiblio.org>> wrote: This happened to us at the College of Charleston probably 15 years ago. It creates a lot of extra record-keeping! We are happy to answer any questions you might have. I have a fantastic accounting assistant, Salter Scharstein. Katina Strauch From: ACQNET-L [mailto:acqnet-l-bounces_at_lists.ibiblio.org<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 10:27 AM To: acqnet-l_at_lists.ibiblio.org<mailto:acqnet-l_at_lists.ibiblio.org> 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<tel:518-580-5511> Fax: 518-580-5541<tel:518-580-5541> Email: duchen_at_skidmore.edu<mailto:duchen_at_skidmore.edu> ********************************************* _______________________________________________ ACQNET-L mailing list ACQNET-L_at_lists.ibiblio.org<mailto:ACQNET-L_at_lists.ibiblio.org> http://lists.ibiblio.org/mailman/listinfo/acqnet-l -- Carol Kornhauser Acquisitions Coordinator Shadek-Fackenthal Library carol.kornhauser_at_fandm.edu<mailto:carol.kornhauser_at_fandm.edu> p. 717-291-3841 | f. 717-358-4436 USPS Mailing Address Franklin & Marshall College Library Acquisitions P.O. Box 3003 Lancaster, PA 17604-3003 FedEx/UPS/Airborne/DHL Mailing Address Franklin & Marshall College Library Acquisitions 415 Harrisburg Avenue Lancaster, PA 17603-2615 .לִמְנוֹת יָמֵינוּ, כֵּן הוֹדַע; וְנָבִא, לְבַב חָכְמָה So teach us to number our days, that we may get us a heart of wisdom. _______________________________________________ ACQNET-L mailing list ACQNET-L_at_lists.ibiblio.org http://lists.ibiblio.org/mailman/listinfo/acqnet-l
