Revenue Distributions Internal Sales Expense Reimbursements July 1
Revenue Distributions Internal Sales Expense Reimbursements July 1, 2015
Revenue Distributions Internal Sales Expense Reimbursements These 3 transaction types are: Internal entries ü No dollars are moved into or out of SOU funds -only between funds. ü Use the right accounts. 2
REVENUE DISTRIBUTION When one fund collects revenue on behalf of one or more other funds, you must move the revenues to the fund(s) that earned it! 3
REVENUE DISTRIBUTION This is a simple entry: Debit – Fund distributing the revenue Use the 0 xxxx account used in the original entry. Credit – Fund receiving the revenue Use THE SAME revenue account as above. 4
INTERNAL SALES An Internal Sale is… The sale of goods or services from one SOU fund to another. ---------------NOT for Budgeted Operations funds. 5
INTERNAL SALES Must not increase net revenues, so Use an 09 xxx account so the revenue can be eliminated by SOU for reporting purposes. 6
INTERNAL SALES Use account codes that begin with (partial list below) 09 7
INTERNAL SALES • Bookstore sells inventory to other funds. • Print & Copy sells printing services to other funds. • Housing and Dining provides catering to other departments. 8
INTERNAL SALE EXAMPLE “The bookstore sells goods to other funds on campus. ” The first 2 lines 70 in entry JBKS 0107 on 10/31/12… Debit funds that received goods using natural expense accounts. Credit BKSOPR, acct 09391 Miscellaneous Internal Sales. 9
EXPENSE REIMBURSEMENT When one fund pays for goods or services on the behalf of another fund, And then the second fund(s) must pay back the first fund. 10
EXPENSE REIMBURSEMENT There are two types of Expense Reimbursement. 1. Reimbursing clearly identifiable Goods or Services (“Direct”). 2. Reimbursing a group of expenses that cannot be easily identified (“Indirect”). Reimbursement of expense must not exceed the original total cost of the expense. 11
EXPENSE REIMBURSEMENTS Type 1 Reimbursement of Direct Expenses CREDIT the fund account that paid the original expense DEBIT the fund where the expense belongs and use the SAME EXPENSE ACCOUNT. 12
EXPENSE REIMBURSEMENT EXAMPLE OF: Type 1 Reimbursement of Direct Expenses “IT purchased a computer and monitor on behalf of the International Programs department and then gets reimbursed. ” Same expense account Entry detail for J 0070402 11/15/12 13
EXPENSE REIMBURSEMENT Type 2 Reimbursement of Indirect expenses. (aka Internal Sales Reimbursement) CREDIT the fund with the original expenses use a 79 xxx account. DEBIT the fund that received the Goods or Services use the natural account that describes the expense. 14
EXPENSE REIMBURSEMENTS Use account codes that begin with (partial list below) 79 (Internal Sales Reimbursements show up as a credit to other expenses. ) 15
EXPENSE REIMBURSEMENTS EXAMPLE OF: Type 2 Reimbursement of Indirect Expenses “RVTV is reimbursed for time and materials for duplicating DVDs for the Schneider Museum. ” Detail from J 0069897 9/17/12 Credit RVTGAH - account 79107 Debit SMAGEN – account 24602 16
Revenue Distributions Internal Sales Expense Reimbursements Summary Revenue Distributions – same revenue acct for Debit and Credit Internal Sales – Use 09 accts for Credit; no Bud Ops funds Expense Reimbursements – Direct type – use same expense acct for Debit and Credit - Indirect type – use 79 accts for Credit 17
Revenue Distributions Internal Sales Expense Reimbursements For additional Information contact: Revised March, 2014 Associate Director, Business Services https: //inside. sou. edu/busserv/staff. html 552 -8536 or Director of Business Services https: //inside. sou. edu/bus-serv/staff. html 552 -6594 18
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