May 21 / Rob Persons

Reimbursable Accounting Without an Advance: A NOAA-NASA Walkthrough

This post walks through every USSGL entry for a federal reimbursable transaction where the buyer does not pay in advance. If you need the conceptual framework first (what reimbursable work is, buyer vs. seller roles, the Economy Act), start with Reimbursable Work Defined or the main pillar post.
We will follow a single example from start to finish: NOAA buys $200,000 in satellite launch services from NASA, with no advance. NASA also has a $900,000 direct appropriation for the year and is anticipating $500,000 in total reimbursable authority. The example uses round numbers to keep the math out of the way of the concepts.

Why the no-advance scenario matters

The no-advance scenario is the more common pattern for ongoing services. The seller performs the work first, records a receivable at performance, and collects after billing. The accounting changes meaningfully when an advance is involved (covered in a separate post, coming soon), because the seller has to recognize a liability before any revenue is earned.
Three things to keep in your head as you read:
1. Revenue is earned at performance, not at billing. This is accrual accounting, not cash basis. Some legacy financial systems make this hard, but conceptually the rule is firm.
2. Buyer and seller entries have to mirror. Treasury's intragovernmental elimination depends on it.
3. The seller cannot spend its reimbursable authority until the order is in. Anticipated reimbursements are placeholders. Apportionment and allotment of reimbursable authority follow the order, not precede it.

The four phases

The accounting breaks naturally into four phases. These are not formal designations in OMB or Treasury guidance, but they map directly to the entries you have to make.
Phase What Happens
Authority Seller records appropriation and anticipated reimbursable authority. OMB apportions. Agency head allots.
Agreement Buyer issues the order. Seller records the unfilled customer order without advance. Seller's reimbursable authority is apportioned and allotted.
Performance Seller delivers. Revenue is earned. UCO liquidates to reimbursements earned receivable. Buyer accrues expense and payable.
Closeout Buyer pays. Seller collects. Year-end true-up zeros out unused anticipated reimbursements.

Setting up the example

Buyer: NOAA (National Oceanic and Atmospheric Administration)
Seller: NASA (National Aeronautics and Space Administration)
Service: Satellite launch
Agreement value: $200,000
Advance: None
NASA's full-year setup: $900,000 direct appropriation, $500,000 anticipated reimbursable authority
Most of the early authority entries are NASA-only (the seller side), since NASA is the one that has to set up its appropriation and its anticipated reimbursable authority before any orders come in. NOAA's entries kick in at the agreement phase.

Phase 1: Authority (NASA only)

Step 1.1: NASA receives its annual appropriation and warrant ($900,000)

The appropriation lands in fund balance with Treasury and shows up as unapportioned authority until OMB acts.
Budgetary:
DR 411900 Other Appropriations Realized $900,000
CR 445000 Unapportioned Authority $900,000
Proprietary:
DR 101000 Fund Balance with Treasury $900,000
CR 310100 Unexpended Appropriations - Appropriations Received $900,000

Step 1.2: NASA anticipates $500,000 in reimbursable authority

This is the placeholder entry saying NASA expects to receive $500,000 in reimbursable orders this year. The "R" attribute marks this as reimbursable, distinct from direct funding.
Budgetary only:
DR 421000 (R) Anticipated Reimbursements and Other Income $500,000
CR 449000 (R) Anticipated Resources – Unapportioned Authority $500,000

Step 1.3: OMB apportions both the direct and the anticipated reimbursable authority

Both pots move from unapportioned to apportioned. On the SF 132, the direct $900,000 shows as appropriation; the anticipated $500,000 shows as spending authority from offsetting collections.
Budgetary (direct):
DR 445000 Unapportioned Authority $900,000
CR 451000 Apportionments $900,000
Budgetary (reimbursable):
DR 449000 (R) Anticipated Resources – Unapportioned Authority $500,000
CR 459000 (R) Apportionments – Anticipated Resources – Programs Subject to Apportionment $500,000
What the SF 132 looks like. The apportionment schedule shows the direct appropriation on one line and the spending authority from offsetting collections on a separate line, with both totaling the budgetary resources available for the year. The schedule also breaks out apportioned amounts by program (direct program vs. reimbursable program).

Step 1.4: NASA administrator allots the apportioned funds

Apportionments move to allotments. This is the level at which the agency can actually commit, obligate, and outlay.
Budgetary (direct):
DR 451000 Apportionments $900,000
CR 461000 Allotments - Realized Resources $900,000
At this point, NASA can spend against its direct allotment. It cannot yet spend against its reimbursable allotment because there is no order. The reimbursable allotment is the ceiling, not the trigger.

Step 1.5: NASA spends its direct appropriation on launch equipment ($900,000)

NASA orders launch equipment for its baseline operations using the direct appropriation. This is not reimbursable; it is included to show the full picture of NASA's books.
Order placed:
Budgetary:
DR 461000 Allotments - Realized Resources $900,000
CR 480100 Undelivered Orders - Unpaid $900,000
Equipment received (accrual):
Budgetary:
DR 480100 Undelivered Orders - Unpaid $900,000
CR 490100 Delivered Orders - Obligations, Unpaid $900,000
Proprietary:
DR 175000 Equipment $900,000
CR 211000 Accounts Payable $900,000
DR 310700 Unexpended Appropriations Used $900,000
CR 570000 Expended Appropriations $900,000
Memo Entry:
DR 880200 Purchases of Property, Plant, and Equipment $900,000
CR 880100 Offset for Purchases of Assets $900,000
Payment:
Budgetary:
DR 490100 Delivered Orders - Unpaid $900,000
CR 490200 Delivered Orders - Paid $900,000
Proprietary:
DR 211000 Accounts Payable $900,000
CR 101000 Fund Balance with Treasury $900,000
DR310710 Unexpended Appropriations – Used - Disbursed $900,000
DR 570000 Expended Appropriations – Used - Accrued $900,000
CR 310700 Unexpended Appropriations – Used - Accrued $900,000
CR 570010 Expended Appropriations - Disbursed $900,000

Phase 2: Agreement

Step 2.1: NOAA and NASA enter the $200,000 agreement

This is where G-Invoicing comes in. NOAA places the order, NASA receives it. The order activates NASA's reimbursable spending authority.

Step 2.2: NOAA records its obligation

NOAA assumes all upstream authority (appropriation, apportionment, allotment) is already in place. The order itself is a straight obligation against NOAA's allotment.
NOAA budgetary:
DR 461000 Allotments - Realized Resources $200,000
CR 480100 Undelivered Orders - Unpaid $200,000

Step 2.3: NASA records the unfilled customer order without advance

NASA's first entry on the seller side. This is the budgetary recognition of the order.
NASA budgetary:
DR 422100 Unfilled Customer Orders Without Advance $200,000
CR 421000 Anticipated Reimbursements and Other Income $200,000
The anticipated reimbursement is being converted to an actual order. The $500,000 anticipated balance drops to $300,000, and a $200,000 UCO appears.

Step 2.4: NASA's reimbursable authority moves through apportionment and allotment for this specific order

Because the order is now real (not anticipated), the corresponding apportionment and allotment lines have to recognize it specifically.
Budgetary:
DR 4459000 (R) Apportionments – Anticipated Resources – Programs Subject to Apportionment  $200,000
CR 451000 Apportionments - Realized Resources (R) $200,000
DR 451000 Apportionments - Realized Resources (R) $200,000
CR 461000 Allotments - Realized Resources (R) $200,000
NASA now has $200,000 of actually-spendable reimbursable authority.

Phase 3: Performance

Step 3.1: NASA buys $200,000 in launch supplies for the NOAA mission

NASA needs supplies specific to this launch. It orders, receives, and pays using its reimbursable allotment.
Order:
DR 461000 Allotments - Realized Resources (R) $200,000
CR 480100 Undelivered Orders - Unpaid (R) $200,000
Receipt:
Budgetary:
DR 480100 Undelivered Orders - Unpaid (R) $200,000
CR 490100 Delivered Orders - Unpaid (R) $200,000
Proprietary:
DR 610000 Operating Expense $200,000
CR 211000 Accounts Payable $200,000
Payment:
Budgetary:
DR 490100 Delivered Orders - Unpaid (R) $200,000
CR 490200 Delivered Orders - Paid (R) $200,000
Proprietary:
DR 211000 Accounts Payable $200,000
CR 101000 Fund Balance with Treasury $200,000

Step 3.2: NASA launches the satellite (the performance event)

This is the critical moment. Two things happen simultaneously, one on the proprietary side and one on the budgetary side.
NASA proprietary (revenue earned at performance):
DR 131000 Accounts Receivable $200,000
CR 520000 Revenue from Services Provided $200,000
NASA budgetary (UCO liquidated to reimbursements earned receivable):
CR 425100 Reimbursements and Other Income Earned - Receivable $200,000
DR 422100 Unfilled Customer Orders Without Advance $200,000
The UCO is gone because the order has been filled. Reimbursements earned receivable mirrors the proprietary AR on the budgetary side.
Why this is the most common audit finding. Revenue has to be recorded when the service is performed, not when the invoice goes out. Some legacy federal financial systems were built around billing-based revenue recognition, which forces year-end workarounds and produces audit findings reading "revenue not recorded when earned." If your system does not naturally hit revenue at performance, your team needs a manual process to make sure the entry gets made.

Step 3.3: NOAA accrues the expense and payable

Mirror image on the buyer side.
NOAA budgetary:
DR 480100 Undelivered Orders - Unpaid $200,000
CR 490100 Delivered Orders - Unpaid $200,000
NOAA proprietary:
DR 610000 Operating Expense $200,000
CR 211000 Accounts Payable $200,000
DR 310700 Unexpended Appropriations Used $200,000
CR 570000 Expended Appropriations $200,000
NOAA's $200,000 AP now matches NASA's $200,000 AR. Intragovernmental elimination is set up to work.

Phase 4: Closeout

Step 4.1: NOAA pays NASA $200,000

NOAA budgetary:
DR 490100 Delivered Orders - Unpaid $200,000
CR 490200 Delivered Orders - Paid $200,000
NOAA proprietary:
DR 211000 Accounts Payable $200,000
CR 101000 Fund Balance with Treasury $200,000
DR 310710 Unexpended Appropriations – Used - Disbursed $200,000
DR 570000 Expended Appropriations – Used - Accrued $200,000
CR 310700 Unexpended Appropriations – Used - Accrued $200,000
CR 570010 Expended Appropriations - Disbursed $200,000

Step 4.2: NASA collects the $200,000

NASA budgetary:
DR 425200 Reimbursements Earned - Collected $200,000
CR 425100 Reimbursements Earned - Receivable $200,000
NASA proprietary:
DR 101000 Fund Balance with Treasury $200,000
CR 131000 Accounts Receivable $200,000
DR 570010 Expended Appropriations – Disbursed
CR 310710 Unexpended Appropriations – Used - Disbursed

Step 4.3: Year-end true-up on NASA's books

Remember NASA anticipated $500,000 in reimbursable authority but only used $200,000. The remaining $300,000 has to be zeroed out at year end. Anticipated authority does not carry over.
Reduce unused apportioned anticipated resources:
DR 459000 (R) Apportionments – Anticipated Resources – Programs Subject to Apportionment $300,000
CR 421000 Anticipated Reimbursements $300,000
Both balances go to zero. If NASA wants reimbursable authority next year, it goes back through the apportionment process from scratch.
Audit hot spot. Stale anticipated reimbursement balances at year end are a commonly cited findings in federal financial statement audits. Build a year-end checklist that confirms the zero-out happens.

What ends up on the financial statements

After everything posts, here is what shows up:
NOAA:
• $200,000 in expenses on the Statement of Net Cost
• Reduction in fund balance with Treasury
• Used appropriation reflected in net position changes
NASA:
• $200,000 in revenue from services provided
• $200,000 in expenses from the supplies bought to perform the work
• Net effect on the Statement of Net Cost is small (revenue offsets expense in our case)
• Fund balance with Treasury is back where it started for this transaction (paid out $200,000 for supplies, collected $200,000 from NOAA)
Intragovernmental elimination:
• NOAA's $200,000 in payments to NASA eliminates against NASA's $200,000 in collections from NOAA at the government-wide consolidation

Summary of buyer-side and seller-side entries

Phase NOAA (Buyer) NASA (Seller)
Authority Assumed already in place 4119/4450, 4210/4450, apportionment, allotment
Agreement 4610 → 4801 (obligate) 4221/4210 (UCO without advance), apportion + allot the reimbursable authority
Performance 4801 → 4901, accrue expense and AP 4221/4251 (budgetary), 1310/5200 (proprietary)
Closeout 4901 → 4902, pay 4251/4252 (budgetary), 1010/1310 (proprietary). Year-end: zero out anticipated.

Common pitfalls in the no-advance scenario

• Not liquidating the UCO at performance. This is the entry that turns the budgetary UCO into reimbursements earned receivable. Skip it and the UCO sits stale forever.
• Recording revenue at billing. Revenue is earned at performance. If your system does not handle this automatically, you need a manual control to catch it.
• Forgetting to apportion and allot the reimbursable authority once the order is in. Anticipated authority is not the same as available authority. The order is what activates the actual spending capacity.
• Buyer-seller payment mismatches. If NOAA's $200,000 payment does not exactly match what NASA records as collected, intragovernmental elimination fails.
• Skipping the year-end zero-out of unused anticipated reimbursements.

Frequently asked questions

When is revenue recognized in federal reimbursable work?

Revenue is recognized when the service is performed, not when the invoice is sent or when payment is collected. In the NOAA-NASA example, NASA earns revenue at the moment of launch, even if billing happens days or weeks later. This is straight accrual accounting under FASAB Statement of Federal Financial Accounting Standards 7. The most common audit finding in reimbursable accounting is revenue recorded at billing instead of at performance.

What is an unfilled customer order in federal accounting?

An unfilled customer order (UCO) is a budgetary account on the seller's books that recognizes a buyer's order that has not yet been performed. In a no-advance scenario, the seller records USSGL 422100 (Unfilled Customer Orders Without Advance) when the order comes in. When the service is performed, the UCO is liquidated to USSGL 425100 (Reimbursements Earned - Receivable). A stale UCO balance usually means somebody skipped the performance entry.

Why do I need to apportion anticipated reimbursable authority?

Anticipated reimbursable authority is a placeholder for orders the seller expects to receive during the year. OMB apportions it the same way it apportions direct appropriations, so the agency has a ceiling on how much reimbursable work it can perform. Without apportionment, the seller would be at risk of accepting more orders than it has authority to fulfill, which could create an Antideficiency Act issue.

What happens to anticipated reimbursable authority at year end?

Any unused anticipated reimbursable authority has to be zeroed out at year end. It does not carry over to the next fiscal year. In the NOAA-NASA example, NASA anticipated $500,000 but only used $200,000, so the remaining $300,000 in unused anticipated reimbursements and apportioned anticipated resources gets reversed at year end. If NASA wants reimbursable authority for the next year, it goes back through the apportionment process from the beginning.

What is the difference between reimbursements earned receivable and accounts receivable?

Reimbursements earned receivable (USSGL 425100) is a budgetary account. Accounts receivable (USSGL 131000) is a proprietary account. They represent the same economic event (the seller is owed money for services performed) but track it through the two parallel sets of books that federal accounting requires. Both entries get made simultaneously at the moment of performance.

Why do buyer and seller entries have to match?

The federal government consolidates its financial statements at the government-wide level, and intragovernmental transactions have to eliminate. If NOAA records a $200,000 payable to NASA, NASA has to record a $200,000 receivable from NOAA. Any mismatch creates an elimination error that shows up on Treasury's reconciliation reports. This is why G-Invoicing exists: to enforce alignment between buyer-side and seller-side records.

What is coming next

The advance scenario changes the entries at the agreement phase (the UCO is recorded with an advance, not without) and at the performance phase (revenue is earned against the advance liability instead of creating an AR). A separate walkthrough is coming soon.

Want federal-specific CPE on this?

Federal Finance CPE offers a free NASBA-approved Treasury Account Symbol course as a starting point. Our full library includes detailed walkthroughs of reimbursable agreements, USSGL entries, and federal financial reporting.

Related posts

• Federal Reimbursable Work: The Complete Guide

• Reimbursable Work Defined: What It Is, Why Agencies Use It, and the Economy Act

• Reimbursable Accounting With an Advance (coming soon)

Sources

• Treasury Financial Manual, USSGL section
• OMB Circular A-11
• OMB Circular A-136
• FASAB Handbook (Statement of Federal Financial Accounting Standards 7, Accounting for Revenue and Other Financing Sources)