University of California Davis Self-Supporting Recharge Operations - Billing and Collections
The State of California requires separation of service for external customers from service for internal customers. In addition, the university's financial reports need to show a balance between recharges and expenses. The Aggie Enterprise (AE) system has established Natural Accounts that distinguish internal recharge from external revenue. Furthermore, the campus has established assigned Projects for self-supporting activities to allow users to distinguish revenue and expenses by activity. It is important that recharge and external billing accurately reflect the correct Chart of Account (COA) segments as outline below and in the Knowledge Based Articles (KBA) referenced below.
Content
Recharge/Internal Billing
For detailed information on recharge/internal billing, units should refer to PPM, Section 340-20, Billing Procedures of Service Activities. Departments can recharge internal customers through the Aggie Enterprise (AE) accounting system or via a campus approved boundary billing system such as Stratacore PPMS.
Processing Internal Billing (Recharge) for Units without Boundary Applications - All self-supporting activities should follow the steps outlined within the KBA titled “Processing Internal Billing (Recharge) for Units without Boundary Applications”. Additional guidance on the COA segments pertaining to self-supporting, rate-based activities is provided below.
- Fund
- Recharge Revenue Natural Account
- Recharge Expense Natural Accounts
- 770002 – Materials and Supplies Recharges
- 770003 – Research or Lab Support Services
- 770000 – Facilities and Equipment Maintenance Services
- 770001 – Space and Event Services
- 770004 – Transportation Recharges
- 770005 – IT Services
- 770006 – Other Support Services
- Purpose – Required, please refer to the Chart of Accounts: Purpose website.
- Project – Required for the revenue side of the transaction, only required for the expense side of the financial transition if the customer utilizes a POET chart string or requested one for a GL entry. Please note that all approved, self-supporting activities should have an assigned project code that must be used for all revenue (internal and external). Please ensure that the correct project code is reflected on all billing and process any necessary adjustments as needed.
Billing Utilizing a Campus Supported Boundary Application – for those self-supporting activities that have significant quantities of billing, use of a campus approved boundary application is recommended. The campus supported Stratacore PPMS web-based, management software system directly feeds billing information to the GL and PPM. For more information on this system please visit the Stratacore PPMS website.
Intercampus Order/Charge (IOC)/Billing Other UC Campuses
The Intercampus Order/Charge (IOC) form is used for billing of financial expenses for goods and/or services between UC campuses or between a UC Campus and the UC Office of the President (UCOP). The form and instructions are available on the Accounting & Financial Reporting Forms website. Please visit the Intercampus Order/Charge (IOC) website for additional information on IOC process.
Invoicing/External Billing
or detailed information on invoicing/external billing, units should refer to PPM, Section 340-09, Sales of University Goods and Service to Non-University Users and the Accounts Receivable website provided by Finance & Business. Units can provide goods or services to external customers, invoice and receive payment either at the point of sale, AE invoicing, or through a campus supported boundary billing system such as Stratacore PPMS.
- Point Of Sale (POS) is either cash, check or credit cards taken at the time of sale – The KFS Cash Receipt (CR) or Credit Card Receipt (CCR) document is used.
- AE - Utilize the following KBA’s for instructions on processing external invoices:
- Campus supported boundary billing systems, such as Stratacore PPMS, provides invoicing capabilities that are directly fed to the GL.
Chart of Account (COA): The following additional COA segment value guidance should be used for external billing activities:
- Revenue Natural Account
- 410000 – External Sales and Services Revenue
- Balance Sheet Natural Account
- 127300 – Accounts Receivable Education Activities
- 127500 – Accounts Receivable Auxillary
- 129002 – Other Receivables
- Purpose – Required, please refer to the Chart of Accounts: Purpose website.
- Project – Required for the revenue side of the transaction. Please note that all approved, self-supporting activities should have an assigned project code that must be used for all billing (internal and external). Please ensure that the correct project code is reflected on all billing and process any necessary adjustments as needed.
Collections
Remember, when issuing an invoice, you are granting credit to your customers when you provide the goods/services instead of collecting the money immediately. It is important that you follow-up with your customers on aging receivables. For more information on the collection process and applicable accounting documents please refer to the Finance Accounts Receivable and the AR Collections Strategies website.