Internal activities that have less than $100,000 in anticipated internal revenue in a fiscal year will not be permitted to use internal billings, service billings or ID billings unless they meet the rate setting requirements outlined for internal sales greater than $100,000. (See RSOP 2.0 – Reporting Requirements for Recharge/Service Centers for more information.)
In order for these smaller activities to continue providing goods/services to other Indiana University Accounts, they must move the allowable cost (see RSOP 6.0 Allowable/Unallowable Expenses for Recharge/Service Centers) to another IU account. This can be accomplished by using various KFS documents:
- Transfer (TF, YETF) – this document moves cash from one account to another account. Transfers can never be used to move costs to a Contract & Grant account. A 67* or 69* account can NOT use a Transfer of Funds document to a recharge/service center 66* account. For non-Contract & Grant accounts, transfers are the preferred method when moving multiple costs and/or when an auxiliary organization wants to reflect income on their financial statement. Object codes 9916 (“To”) will reflect revenue and object code 9966 (“From”) will reflect expense on the auxiliary income statement.
- Salary Transfer (ST, YEST) – this document moves compensation and benefits from one account to another account. This document identifies a specific employee and will move the salary and benefits associated with the amount of effort to be charged to an IU account. The ST documents must be processed prior to the closing of the effort period. (See the Office of Research Administration’s Effort Certification calendar for the timeline.)
- Distribution of Income/Expense (DI, YEDI) – this document moves expense from one account to another account. This cannot be used for compensation.
- General Accounting Adjustment (GEC, YEGE) – this document moves a specific transaction from one account to another account. The document number of the expense being moved must be entered on the General Accounting Adjustment. The General Accounting Adjustment should be done within 90 days of the original transaction.
Moving Costs to Contract and Grant Accounts
When moving costs to a Contract and Grant account (CG fund group), the actual object code of the original cost must be used to move cost. General Accounting Adjustment is the preferred document for non-compensation expenses as it captures the original document number for audit purposes. Departments using the General Accounting Adjustment to move cost to a Contract and Grant account may be required to submit supporting documentation of the cost. For moving compensation and benefits to a Contract &Grant account, a salary transfer document must be used.
Regardless of the document used, only allowable cost may be moved to a Contract &Grant account. In case of an audit, the cost moved must be substantiated by the originating account.