Appendices
Contents
- Appendix A: Expenditure accruals
- Appendix B: Unearned (deferred) revenue
- Appendix C: Other debtors (income accruals)
- Appendix D: Prepayments
Appendix A - Expenditure accruals
At the end of any month there might be some costs incurred for which the invoice has not been received (or received but not entered into either CUFS or SoftCo).
Example:
- An engineer comes to the Institution in the middle of July and repairs a machine
- The engineer will charge £1,500 for the work but the invoice will not be received until the end of August
- However, that repair took place in July and should therefore be included in the accounts for July
This is more significant at year end when it is important to get the repair cost in the right accounting year.
The costs are allocated to the correct year by means of a General Ledger journal. This journal is then reversed out in the following month or year so that when the invoice is logged onto CUFS and paid in the normal way, there is no double charge to the institution’s account.
How to raise the accrual journal
- Log into CUFS in the normal way and go into your institution GL responsibility
- Select Journals > Enter
- Click on the New Batch button and complete the header details in the normal way
- Click on the Journals button and start to enter the accrual journal for Jul
- Period: should be JUL-26 at this year end
- Category: select Auto Reversal from the list of values
- The auto-reverse function should only be used when it is appropriate for the journal to be reversed in the next period. When it is not appropriate to reverse the journal in the next period, the journal should be entered in the normal way and manually reversed in the appropriate period
Description: enter as appropriate - Control Total: enter as appropriate
- Account codes to be used:
Institution Code
Debit: As normal
Credit: As per debit line
Cost Centre
Debit: As normal
Credit: As per debit line
Source of Funds
Debit: As normal
Credit: 0000
Transaction Code
Debit: Appropriate to the expenditure being accrued
Credit: VBAK (accrual)
- Save the journal
In the accounts
From the Navigator screen choose Journals >Post. Enter the batch name to recall the journal and tick the box to select it for posting. Behind the scenes, a second (reversing) journal will be created in the next period and will be automatically posted by the Finance Division.
If the journal category Accrual or Adjustment is used, then remember to manually reverse it in the AUG-26 period, using the More Actions button, and to post both journals.
Posting the journal
The accrual journal debits (or charges) expenditure - in place of the absent invoice. The credit entry goes to the VBAK balance sheet code, representing a liability for the goods/ services received but not yet invoiced.
The reversal journal creates a credit against the original expenditure transaction code (e.g. EMZZ from the screen shot above). This in turn is cancelled out by a corresponding debit balance when the supplier’s invoice is finally received and processed on CUFS in the normal way.
Example:
Current Financial Year
29-Jul-2026
Create journal to accrue expenditure – £1,500
(No invoice received but expenditure is charged to the correct year)
New Financial Year
1-Aug-2026
Journal reverses automatically (£1,500)
20-Aug-2026
Invoice for repairs is entered in AUG-26 £1,500
Effect on expenditure in the new year £ 0
FAQs
- Does it matter if a purchase order has already been raised for the goods/services in July?
No
- Should the VAT element of the goods/services be included in the accrued total?
Yes
Then the accrual journal must be repeated in August. It will reverse in September when, hopefully, the invoice will be entered on CUFS
Appendix B - Unearned (deferred) revenue
Income should be deferred where it has been received by the institution in advance of the goods or services being supplied (for example in the case of trading, course fees).
Example:
Course fees invoice on 1 July of £11,000 for a course starting on 5 August
How to adjust for Deferred Income
1. Raise a new journal batch and create a journal choosing the category Auto Reversal
The auto-reverse function should only be used when it is appropriate for the journal to be reversed in the next period. When it is not appropriate to reverse the journal in the next period the journal should be entered in the normal way and manually reversed in the appropriate period.
- choose the period JUL-26
- enter a suitable description, for example Defer AR Invoice 123456 for course starting 5-Aug-2026
- Does it matter if a purchase order has already been raised for the goods/services in July?
Institution Code
Debit: As normal
Credit: As per debit line
Cost Centre
Debit: As normal
Credit: As per debit line
Source of Funds
Debit: As normal
Credit: 0000
Transaction Code
Debit: As normal (e.g., LAAD)
Credit: VZAA (unearned revenue)
- Save the journal
Posting the journal
From the Navigator screen choose Journals > Post.
Enter the batch name to recall the journal and tick the box to select it for posting. Behind the scenes, a second (reversing) journal will be created in the next period and will be automatically posted by the Finance Division.
If the journal category Adjustment is used, remember to manually reverse it in the AUG-26 period, using the More Actions button, and to post both journals.
In the accounts…
The deferred income journal will debit (reduce) income in July. The credit entry will go to the VZAA balance sheet code, creating a liability for the income received for which no goods/services have yet been provided.
Example:
Current financial year:
2-Jul-2026 Sales invoice raised £11,000
29-Jul-2026 Create journal to reduce income (£11,000)
Effect on income in the current year £ 0
(proceed of sales invoice is deferred and a liability created on Balance sheet)
Appendix C: Other debtors (income accruals)
These are amounts for good or services which have been provided by the University before 31 July but where an invoice on the Accounts Receivable system has not been raised.
Example:
A conference was held on 28 July 2026 for which the delegates will be invoiced on 30 August 2026 but the AR module for July closed on 15 August
How to adjust for them
- Raise an Auto Reversal journal in July with an appropriate description, for example Conference held in July but not invoiced.
The auto-reverse function should only be used when it is appropriate for the journal to be reversed in the next period. When it is not appropriate to reverse the journal in the next period the journal should be entered in the normal way and manually reversed in the appropriate period.
Institution Code
Debit: As per credit line
Credit: As normal
Cost Centre
Debit: As per credit line
Credit: As normal
Source of Funds
Debit: 0000
Credit: As normal
Transaction Code
Debit: UNAA (other debtors
Credit: As normal (e.g., LAAC)
- Save the journal
From the Navigator screen choose Journals>Post. Enter the batch name to recall the journal and tick the box to select it for posting. Behind the scenes, a second (reversing) journal will be created in the next period and will be automatically posted by the Finance Division.
If the journal category Accrual or Adjustment is used, then remember to manually reverse it in the AUG-26 period, using the More Actions button, and to post both journals.
In the accounts…
Income is credited to the institution account in JUL-26 without an invoice being raised. The reversing action of the journal in AUG-26 means the subsequent sales invoice raised in August is netted off to zero.
Example:
Current financial year:
29-Jul-2026 Create journal to credit income £15,000
(in lieu of sales invoice not yet raised)
New financial year:
1-Aug-2026 Journal reverses automatically (£15,000)
31-Aug-2026 Create sales invoice £15,000
Effect on income in the new year £ 0
Appendix D: Prepayments
A prepayment is when goods or services are paid for and some, or all, the goods or services relate to the next financial year.
Example:
A bill is received in advance of the annual maintenance charge for equipment of £10,200
The invoice is received and processed in July 2026 however it relates to maintenance for the period 1 August 2026 - 31 July 2027
The expenditure is taken out of the 2025/26year by means of a journal which is then reversed in AUG-26 to allocate the cost to the subsequent year.
How to raise the journal
- Start to enter the journal in the normal way
- Period: should be JUL-26 at this year end
- Category: select Auto Reversal from the list of value
The auto-reverse function should only be used when it is appropriate for the journal to be reversed in the next period. When it is not appropriate to reverse the journal in the next period, the journal should be entered in the normal way and manually reversed in the appropriate period.
- Description: Prepayment of invoice X for period dd/mm/yy to dd/mm/yy
- Control total: enter as appropriate
- Enter the following lines:
Institution Code
Debit: As per credit line
Credit: As normal
Cost Centre
Debit: As per credit line
Credit: As normal
Source of Funds
Debit: 0000
Credit: As normal
Transaction Code
Debit: UNGA (prepayment)
Credit: As normal (e.g., EUEF)
- Save the journal:
Posting the journal
From the Navigator screen choose Journals > Post.
Enter the batch name to recall the journal and tick the box to select it for posting. Behind the scenes, a second (reversing) journal will be created in the next period and will be automatically posted by the Finance Division.
If the journal category Adjustment is used then remember to manually reverse it in the AUG-26 period, using the More Actions button, and to post both journals.
Current financial year:
16-Jul-2026 Suppliers invoice entered in CUFS £10,200
29-Jul-2026 Prepayment journal reduces (credits) expenditure (£10,200)
Effect on expenditure in the current year £ 0
New financial year:
1-Aug-2026 Journal reverses, charging expenditure to dept account £10,200