Unearned Revenue

According to GAAP, accrual accounting requires revenue be recognized in the fiscal year and period in which the goods or the service are provided. Unearned revenue is recorded for payments received for goods or services which have not yet been provided. A journal voucher needs to be processed in the future period or year that the goods or services are to be provided.

To deposit revenue through TWADEPO when it is received:

Debit (CASH, CHEK, CARD, or BANK depending how revenue was received)
Credit (MISC) Department Index Unearned Revenue Account Code

To record the reversal in a future period or fiscal year:

Debit Department Index Unearned Revenue Account Code
Credit Department Index Revenue Account Code

Undistributed Revenue

Revenue earned for goods or services that is accumulated in the liability account code B5801 until distributed as revenue.

Common unearned/undistributed revenue account codes:

If you have any questions please contact Financial Services at 6-1256.