Mail Center Accruals

Under the modified accrual basis of accounting, mail center costs incurred as of June 30 but paid in July must be accrued (recorded in the thirteenth financial accounting period). Automated year-end mail center cost accrual and accrual reversal entries are created from current fiscal year mail center cost transactions processed through the Department of Administration (DOA) Central Mail interface.

Posting the Mail Center Costs Accrual Transactions

The DOA Central Mail interface will post the July Mail Center costs to the NCAS system on the second business day of the new fiscal year. The system programmatically creates and posts accrual and accrual reversal transactions for July mail costs when the actual July mail center interface batch is generated. The accrual batch is processed as a closed period adjustment with an effective date of June 30. The automated accrual reversal will post to the SBM file with a future date of 06/30.

Mail Center costs are summarized and post as liabilities in the Accounts Payable account, 211100. The centers to which the liability account posts are the same as those generated by the actual Central Mail interface posting.

The entries generated by the Central Mail interface accrual process are demonstrated below:

July NCAS Central Mail Interface Entry (effective date is in July):

Agency General Ledger Entries for Payment
DR Postage Expense (532840003) Company and center from MCBS bar code	CR Cash (111240, 111260, or 111270) Center roll-up is based on the AP02 accounting rule used in writing checks.

Agency General Ledger Entries for Payment

DR Postage Expense (532840003)

Company and center from MCBS bar code

CR Cash (111240, 111260, or 111270)

Center roll-up is based on the AP02 accounting rule used in writing checks.

DOA General Ledger Entries for Reimbursements
DR Cash (111270) Center roll-up is based on the AP02 accounting rule used in writing checks.	CR Reimbursement (5383070AA) AA is equal to reimbursing agency ID number

DOA General Ledger Entries for Reimbursements

DR Cash (111270)

Center roll-up is based on the AP02 accounting rule used in writing checks.

CR Reimbursement (5383070AA)

AA is equal to reimbursing agency ID number

Fiscal Year Mail Center Accrual Entry (effective date is 06/30 of the current calendar year):

Agency General Ledger Entries for Accrual
DR Postage Expense (532840003) Company and center from MCBS bar code	CR Accounts Payable (211100) Center roll-up is based on the AP02 accounting rule used in writing checks.

Agency General Ledger Entries for Accrual

DR Postage Expense (532840003)

Company and center from MCBS bar code

CR Accounts Payable (211100)

Center roll-up is based on the AP02 accounting rule used in writing checks.

DOA General Ledger Entries for Accrual
DR Accounts Receivable (113200) Center roll-up is based on the AP02 accounting rule used in writing checks.	CR Reimbursement (5383070AA) AA is equal to reimbursing agency ID number

DOA General Ledger Entries for Accrual

DR Accounts Receivable (113200)

Center roll-up is based on the AP02 accounting rule used in writing checks.

CR Reimbursement (5383070AA)

AA is equal to reimbursing agency ID number

Fiscal Year Mail Center Accrual Entry (effective date is 06/30 of the next calendar year):

Agency General Ledger Entries for Accrual Reversal
DR Accounts Payable (211100) Center roll-up is based on the AP02 accounting rule used in writing checks.	CR Postage Expense (532840003) Company and center from MCBS bar code

Agency General Ledger Entries for Accrual Reversal

DR Accounts Payable (211100)

Center roll-up is based on the AP02 accounting rule used in writing checks.

CR Postage Expense (532840003)

Company and center from MCBS bar code

DOA General Ledger Entries for Accrual Reversal
DR Reimbursement (5383070AA) AA is equal to reimbursing agency ID number	CR Accounts Receivable (113200) Center roll-up is based on the AP02 accounting rule used in writing checks.

DOA General Ledger Entries for Accrual Reversal

DR Reimbursement (5383070AA)

AA is equal to reimbursing agency ID number

CR Accounts Receivable (113200)

Center roll-up is based on the AP02 accounting rule used in writing checks.

Accrual transactions posted to the system may be examined by reviewing the agency's General Ledger Batch Proof List report.

Verifying the Mail Center Accrual Batch

When the accrual batches are created and posted through Financial Controller to the General Ledger, the normal interface report, OSCOPC FC709-1 Cent Mail To NCAS, can be used to verify the accrual batch totals and detail transaction data to determine the accuracy of the posting transactions.

The Central Mail batch is processed only once and adjustments to the accrual entry must be manually recorded with journal voucher documents entered in Budgetary Control as closed period adjustments with an effective date of June 30 and a "33" in the third and fourth positions of the document ID.