Internal Sales, Transfers, and Correction of Revenue & Expense

[Business Affairs Office News]

Good morning,

The Business Affairs Office (BAO) Financial Services Department would like to remind University of Oregon (UO) personnel of our guidance on internal sales, transfers, and correction of revenue and expense. Following is additional information on each of these transaction types:
Internal Sales & Internal Sales Reimbursements

*         These entries are used to record exchange transactions between University departments.

*         Examples include paying for catering services, supporting an event in exchange for advertising, space rentals, etc.

*         These transactions should credit 09xxx Internal Sales or 79xxx Internal Sales Reimbursement account codes and should debit an expense account code.

o   Use 09xxx codes in Income/Expense, Continuing Education, Designated Operations, Service Department, and Auxiliary funds.

o   Use 79xxx codes in the General Fund (001100) or ICC Fund (001700).
Fund Transfers

*         A transfer is a non-exchange transaction between two funds.

*         They are commonly used to correct negative fund balances or prior year activity, move fund balance in preparation to terminate a fund, or provide support to another department without receiving anything in exchange.

*         To record a fund transfer, debit account code 92001 in the index providing resources and credit 91001 in the receiving index.
Correcting or Moving Revenue or Expense (for current year activity)

*         If current year revenue or expense is posted incorrectly or needs to be redistributed, you can create a JV that reverses the original posting. The offset will be to the correct FOAPAL elements.

*         Examples include correcting the account code used to pay a Banner invoice, moving a portion of revenue from one index to another, or reclassifying an expense to a general ledger prepaid expense account code.

For additional information refer to the flowchart below, detailed procedures, and frequently asked questions from our website at Internal Sales, Transfers, and How to Move Revenue & Expense<https://ba.uoregon.edu/internal-sales-transfers-and-how-to-move-revenue-and-expense>.
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Thank you,

BAO Financial Services Department

Phil Davis, 6-3524, pdavis at uoregon.edu
Jill Ritz, 6-1256, jritz at uoregon.edu<mailto:jritz at uoregon.edu>
Robbin Howard, 6-1115, rchoward at uoregon.edu<mailto:rchoward at uoregon.edu>


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