Indirect Cost Adjustment
The Indirect Cost Adjustment (ICA) document is used to adjust the amount of indirect cost expense charged to a Contracts & Grants account and automatically adjust the associated amount of indirect cost revenue.
Every Contracts & Grants account in Kuali Financials has an associated Indirect Cost Recovery Account. When indirect cost is charged as an expense to a Contracts & Grants account, an equal amount of indirect cost revenue is generated in the corresponding Indirect Cost Recovery Account.
The ICA document is normally used to make small adjustments to align indirect costs with direct expenditures. This document might also be used to correct previous errors with the collection of indirect cost or to manually add indirect cost to an account when Kuali Financials method of calculating indirect cost recovery as a percentage of direct costs is not sufficient. There are no special permission restrictions for the ICA document.
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