A/R & A/P Year-End Cutoff Dates and Process
1. Accounts Receivable (Cash Receipting)
Cutoff for previous year recording: January 31
Through January 31 If a check is deposited on or before January 31 and the check is dated in the previous fiscal year, we will:
Record the revenue as of 12/31 of the previous year, and
Record the associated sponsorship admin cost as of 12/31 of the previous year.
Beginning February 1 Checks deposited on or after February 1 will be posted using the actual bank deposit date, regardless of the check date.
Revenue will post with a transaction date as of the deposit date.
Sponsorship admin costs will post in the month of deposit.
2. Accounts Payable (Invoices)
Cutoff: January 31
Through January 31 If you submit an invoice on or before January 31 for work performed on or before December 31 of the previous fiscal year, we will record the expense as 12/31 of the previous year.
Beginning February 1 Invoices received on or after February 1 will be posted with a transaction posting date as of the actual invoice submission date, even if the work was completed in the prior fiscal year.
3. Exceptions
If you have a compelling reason for an item to be recorded differently than the procedures outlined above, please email your request to accounts@socialgoodfund.org. Our team will review the request on a case-by-case basis and let you know if an exception can be approved.
Real-Life Scenarios
Accounts Receivable Scenarios (Deposit Date-Driven)
Scenario 1: Backdating Allowed + Sponsorship Admin Costs Also Backdated
Check written: prior fiscal year
Deposited January 8th
Deposited into the bank: by January 31 Result:
Revenue posted on 12/31 (prior year)
Sponsorship admin costs posted on 12/31 (prior year)
Scenario 2: Cutoff Passed (No Backdating Allowed)
Check written: prior fiscal year
Delivered: after January 31
Deposited: after January 31 Result:
Revenue posted on deposit date
Sponsorship admin costs posted in the month of deposit
Scenario 3: New-Year Check Before Cutoff
Check written date: new fiscal year
Delivered: January
Deposited: January Result:
Revenue posted on deposit date (new year)
Sponsorship admin costs posted in the month of deposit (new year)
Accounts Payable Scenarios (Submission Date-Driven)
Scenario 1: Work Performed in Prior Year, Invoice Submitted Before Cutoff
Work performed: prior fiscal year
Submitted: by January 31 Result:
Expense posted as 12/31 (prior year)
Scenario 2: Work Performed in Prior Year but Submitted After Cutoff
Work performed: prior fiscal year
Submitted: after January 31 Result:
Expense posted on submission date (new year)
Scenario 3: Work Performed in New Year
Work performed: new fiscal year Result:
Expense posted in the new fiscal year
Key Takeaways
January 31 is the standard cutoff for prior-year revenue and expenses.
AR (checks): Deposit date determines posting.
Prior-year checks deposited by Jan 31 → 12/31 (income + sponsorship admin costs).
Deposits after Feb 1 → revenue posts on deposit date; sponsorship admin costs post in the month of deposit.
AP (invoices): Submission date determines posting.
Prior-year work submitted by Jan 31 → 12/31.
Submissions after Feb 1 → post in the new year.
Exceptions may be requested by emailing accounts@socialgoodfund.org.
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