At the end of each quarter, tubs must record manual entries for items not billed through the Central A/R system, if over these thresholds. Record balance sheet entries for items over reporting thresholds.For example: if Harvard partners with another university to hold a conference and receives reimbursement for some of the conference costs (i.e., NOT conference attendance fee revenue), the reimbursement should be credited to the appropriate expense object code or codes, not recorded as revenue. Pass-throughs: DO NOT record revenue for pass-through expenses and expense reimbursements or recoveries, record these as credits to the original expense coding.Unless a specific object code exists to record income offsets, record these offsets in the same coding as initially used to record the related revenue. Record revenue offsets for items that reduce revenue, such as scholarships applied to student income, rebates, discounts, and adjustments for customer overpayments.Apply special accounting rules for certain types of revenue.Central offices process certain types of revenue, such as gifts and sponsored awards see Appendix B for school/tub responsibilities by revenue type. Record manual entries as needed for revenue type. See the University’s Internal Billing Transactions Policy. Sales of goods or services to other University departments must not be recorded as income to the University, nor should they be recorded on the balance sheet (i.e., receivables and reserves, deferred revenue and deposits). Do not record income for internal transactions.If the customer doesn’t pay for the goods/services immediately when provided, different types of balance sheet entries are required depending on when the customer pays for the goods/services relative to when Harvard ships the goods/performs the services: accounts/notes receivable asset, a deferred revenue liability, or a deposits paid liability.Collectibility is reasonably assured (i.e., the customer is expected to pay for the goods or services).The seller's price to the buyer is fixed or determinable (i.e., the price is not conditional upon a future event).Delivery has occurred or services have been rendered.Persuasive evidence of an arrangement (i.e., sufficient documentation) exists. Revenue is considered earned when four criteria are met:
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