Internal Revenue & Expense
Finance Centers or departments can process internal revenue/internal expense transactions and corrections.
Entries for internal revenue/internal expense are processed at the request of the department. It is expected that these requests have been reviewed and approved by the appropriate staff. These transactions are completed using the WebADI template for GL chart strings or the SPUD template for PTAEO strings.
How to Process Internal Transactions
To request an internal revenue/internal expense transaction through a Finance Center complete the Corrections, Journals and Cost Transfer e-form. Attach appropriate backup and approvals for the requested transaction.
To process an internal revenue/internal expense transaction in the department, use Excel and a WebADI template or SPUD template. Refer to the Journal Entry Policy for documentation, record retention and approval requirements.
Use of Internal Natural Classes
- There are specific natural class values that have been created for 'internal' revenues and expenses. These internal values must be used when one department charges another department for providing goods or services.
- Internal charges may not be moved to an ‘external’ natural class value. For example, if you receive a charge from a service center (internal), you are not allowed to move the charge to an external natural class. If you need to see internal and external charges of the same type grouped together, you will be able to do that by using the natural class filter/prompt in IRA reports.
- Natural class values for internal revenues and expenses have a one-to-one relationship, i.e., for every internal revenue natural class value, there is a corresponding internal expense natural class value. For example, service center billings must use an internal revenue natural class to recognize their revenue; they must also use an internal expense natural class to record the charge to the department (or grant). This ‘offsetting’ is necessary so that internal revenue and internal expenses always net to $0 on the institution’s financial statements.
- Transactions using internal natural classes must net to zero. In addition, charges must be within the same “bucket” (INT DEPT, SVC CTR, FO&M) (CIP expense natural classes may be used with more than one revenue bucket). If a transaction originated from a “Source” the department is allowed to move, and is being reallocated to a different string, the natural class must stay the same or be in the same “bucket” (See Inter Department Transaction Natural Class List - below). In most cases, the FO&M "bucket" will only be used by the FAMIS system and reallocation through manual entries is not allowed.