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ctcLink Accounting Manual | 40.30.10.4 Deposits in Transit (1000010)

40.30.10.4 Deposits in Transit (1000010)

The college should use deposits in transit if a check is received from another state agency in July that has a June date. Deposits in transit solve timing problems between state agencies so interagency receivable and payable ledgers’ balance.

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Deposits in transit allows the college/state agency receiving the check to record the deposit as revenue in the previous fiscal year because the college/state agency sending the check considers it a previous fiscal year cash expenditure as the check is dated June.

This process could be used in June Preliminary (Period 12) or for checks dated in June but received between July 1 and month end close (around July 10th), or in periods 13, 131 or 132 depending on when the check is received.

In the new fiscal year, the deposit in transit (1000010) should be reversed and recorded as cash-in-bank (1000070-1000090).

Per OFM this rule for check deposits in transit does not apply to ACH payments.  Colleges should record an ACH payment received in the calendar month it was received regardless of the calendar month in the payment was issued.

For example, if another state agency processes a payment via ACH on June 30th, the college receiving the funds on July 1st or later should record the cash in July.

 


40.30.10 Cash and Cash Equivalents <<  40.30.10.4  >> 40.30.10.5 Petty Cash (1000020)

Page Manager: slocke@sbctc.edu
Last Modified: 3/7/24, 10:47 AM

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