Not-to-Exceed Offsets (4851 and 4852)
The billing AAI numbers 4851 and 4852 for the not-to-exceed (NTE) offsets are optional. You use these billing AAIs to create accounting entries to support the proper accounting of NTE overages. During revenue recognition, the system checks for previously recognized revenue, adds the revenue amount for the current workfile transaction, and validates the total against the NTE limits of the contract. If the amount exceeds the NTE limits, the system creates an NTE offset workfile transaction that represents the amount in excess of the limit:
4851: Defines the NTE offset account to credit when recognizing revenue.
4852: Defines the NTE offset account to debit when recognizing revenue.
The system debits and credits these accounts when you create final G/L journal entries for revenue recognition. These billing AAIs are optional; however, if you set up billing AAI 4851, you must also set up the balancing billing AAI 4852.