Accruals

An accrual is the recording of an expense in the period it is committed, regardless of which period the expense is actually paid. OSF records grant expenses on the date of signature of the grant letter by OSF, regardless of whether the grant will have multiple payments.

It is essential that program staff review and confirm that the account codes while setting up payments during compliance review before the grant is accrued to prevent coding errors that are time-consuming to correct. Grants Officers should also review the accounting codes during compliance review applied to grants before the grants are issued.

The accrual depends on status. Proposal status must be in Grant Letter Processing, and when then OSF representative has signed it, the status changes to Grant Letter Processing Completed.

This status should change to Approved & Accrued through the integration process between Foundation Connect and NetSuite within 8 hours.

Once a grant is accrued, program codes assigned to the accrued grant are charged for the full and complete cost of the grant, with the exception of any payments designated as “contingent”.

Accruals can be double-checked in the NetSuite accounting system if desired.

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