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What are the tuition and financial aid deferral entries that are posted to my organization and reversed in the following month?

April 26, 2017deferral entries financial aid month organization posted reversed tuition

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What are the tuition and financial aid deferral entries that are posted to my organization and reversed in the following month?

1 Answer

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10 Posted

In order to record tuition revenue and financial aid expense when earned (the service is performed), a deferral entry is recorded. Financial Reporting reviews the academic calendar and the number of weeks of the semester that are remaining at the end of the 1st (September) and 3rd (March) quarters and defers the revenue to the appropriate general ledger period. For example, at the end of the first quarter (September), only 5 weeks of the 16 week semester had occurred, thus 11/16 (69%) of tuition revenue and financial aid expense needed to be deferred to the second quarter. The deferral entry is reversed in month following the quarter (October for example) to properly recognize tuition and financial aid in the appropriate quarter.