Originating Accounting Transactions
A. Transferring of Resources
- Determine the purpose and nature of transfer being initiated and if it is allowable
- Mandatory intrafund or interfund transfers
- Nonmandatory intrafund transfers
- Nonmandatory interfund transfers
- Internal Sales:
In addition to this policy and procedures, refer to Administrative Policy:
Selling Goods and Services to University Departments
- Nonmandatory interfund transfers that involve unrestricted and restricted funds are considered not routine and must be processed on an exception basis. Due to restrictions placed on restricted funds and the need to maintain the integrity of these funds, RRC approval is required on these types of transfers.
- Transfer transactions between Agency funds and other University funds must not be processed.
- Under most circumstances, expenses incurred before a sponsored project is established cannot be transferred to the sponsored project.
Refer to Administrative Policy: Charging Sponsored Costs Outside the Award Period
- Initiate and prepare the transaction
- Verify that sufficient resources exist in the Chartfield String creating the transfer out to avoid creating deficits.
- Select appropriate transfer account pairs (600xxx and 610xxx) based on the type of transfer being initiated. Refer to the Chart of Accounts for appropriate account pairs and corresponding definitions.
- Prepare and enter the journal entry in the general ledger with the transfer in (account 600xxx) total equal to the transfer out (account 610xxx) total. The justification for the journal entry should be documented in the Header Long Description field of the journal entry, which includes the business purpose and answer the questions: who, what, where, when, and why.
- Transfers In (account 600xxx) should always be a credit amount
- Transfers Out (account 610xxx) should always be a debit amount