Transfer Account Codes prohibited for Fiscal Year End Receivables (Pending Item) for Federal Funds
June 23, 2022
Due to the requirement that both sides of a transfer be completed within the same fiscal year, the use of a transfer account code on receivable (pending) item that will cross fiscal years is prohibited. Instead, a revenue account code shall be used on the Reason code (funding line) of a receivable for those that would normally use a transfer code.
In the new fiscal year, the interfund deposit shall be a direct-journal deposit using a transfer code and the receivable item created in the prior fiscal year shall be written off using the AR write-off process.