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Scenario 2: The Ordering and Performing Agencies have entered an Order for Equipment in the amount of $5,000. The Performing Agency creates a
Delivered/Performed Transaction on 10/02/21 with Performance Date 9/30/21 and reference the September 2021 Accounting Period.
FOB Point = Destination
o Fund Settlement will occur via IPAC in the amount, and upon completion, of the Ordering Agency’s Received/Accepted Transaction.
Capitalization Indicator = True
Assisted Acquisition Indicator = No
The Equipment meets the capitalization threshold for the Ordering Agency, and the Ordering Agency creates a Received/Accepted Transaction for $5,000
on 10/14/21, agreeing with the Performing Agency’s Delivered/Performed amount.
Transaction 1: The Performing Agency creates a Delivered/Performed Transaction.
FIDS on the Order and Performing Agency’s Performance Transactions
ORDER PERFORMANCE
FOB POINT
CAPITALIZATION
INDICATOR
ASSISTED ACQUISITION
INDICATOR
PERFORMANCE TYPE
TRANSACTION
DATE
PERFORMANCE
DATE
ACCOMPLISHED
DATE
DESTINATION TRUE NO DELIVERED/PERFORMED 10/02/2021 09/30/2021 N/A
ORDERING AGENCY DEBIT CREDIT TC PERFORMING AGENCY DEBIT CREDIT TC
175000 Equipment 5,000
B402
131000 Accounts Receivable (RC22) 5,000
A714
211000 Accounts Payable (RC22) 5,000 510000 Revenue from Goods Sold (RC24) 5,000
Performance Date: 9/30/21 - Accounting Period 12 Performance Date: 9/30/21 - Accounting Period 12
(Assumes a title has been passed when the goods are delivered.) TC B402 can include
supplies, inventory, materials, land, equipment, buildings, PPE, or costs. However,
additional memo entries are required for capital assets.
TC A714 includes revenue accounts for both goods and services; no additional
distinction is necessary. A714 can include supplies, inventory, materials, land,
equipment, buildin
s, PPE, or costs.
ORDERING AGENCY DEBIT CREDIT TC PERFORMING AGENCY DEBIT CREDIT TC
880200 Purchases of Property, Plant,
& Equipment (RC24) 5,000
G120
2
650000 Cost of Goods Sold (RC24) 5,000
E408
880100 Offset for Purchases of Assets (RC24) 5,000 152100 Inventory Purchased for Resale 5,000
Performance Date: 9/30/21 - Accounting Period 12 Performance Date: 9/30/21 - Accounting Period 12
To record activit
for curren
-
ear purchases of PP&E. To record cost of
oods sold.
Transaction 2: The Ordering Agency creates a Received/Accepted Transaction.
FIDS on the Order and Performing Agency’s Performance Transactions
ORDER PERFORMANCE
FOB POINT
CAPITALIZATION
INDICATOR
ASSISTED ACQUISITION
INDICATOR
PERFORMANCE TYPE
TRANSACTION
DATE
PERFORMANCE
DATE
ACCOMPLISHED
DATE
DESTINATION TRUE NO RECEIVED/ACCEPTED 10/14/2021 09/30/2021 10/14/2021
ORDERING AGENCY DEBIT CREDIT TC PERFORMING AGENCY DEBIT CREDIT TC
211000 Accounts Payable (RC22) 5,000
B110
101000 Fund Balance with Treasury 5,000
C186
101000 Fund Balance with Treasury 5,000 131000 Accounts Receivable (RC22) 5,000
Accomplished Date: 10/14/21 - Accounting Period 1 Accomplished Date: 10/14/21 - Accounting Period 1
To record a confirmed disbursement schedule previously accrued. To record the collection of receivables in the Performing Agency for reimbursable
services.