Table of Contents
Please use the contact section in the governing policy.
The costs of internal sales must be separated from all other cost, including the costs of external sales. Combining the costs of internal sales with costs of external sales could lead to misinterpretation of fund balances by auditors resulting in the recharge center activity having to refund profits on external sales to the sponsor.
- The separate internal sales accounting structure should contain only those operating resources directly related to the provision of goods/ services to internal customers. Funds in these accounts cannot be expended for non-internal sales activities.
- Internal sales revenues and expenditures should be recorded in appropriate accounts. The accounts must be used in a manner that will result in a matching of revenues with expenditures.
- Use the actual revenue or expense account codes when processing journal entries, including when correcting transactions incurred in a prior fiscal year. Do not use transfer codes.
Chart of Accounts Structure in PeopleSoft
Chart of accounts structure for the activity if one is needed. Complete the Internal Sales Vendor Authorization/Change form UM 1793 (DOCX).
Internal sales must be uniquely identified in the University financial system. This is accomplished by a combination of specific chart of accounts values; ChartField 2 specific to the internal sales activity and Fund 1150 Internal Sales or 1151 Specialized Internal Sales.
Billing Internal Customers
Bill internal customers using EFS Accounts Payable module and business unit UMNIS. UMNIS is the business unit used when processing a voucher for all internal sales activity (excluding U Market) and University Services (facilities management, capital planning, etc.). UMNIS business unit will differentiate internal sales suppliers from regular suppliers that are found in UMN01. Process an Internal Sales Voucher using one of three billing methods (DOCX): direct voucher entry, internal sales spreadsheet upload process or XML Interface.
- Must be within 60 days from the day the goods or services were See Administrative Policy: Processing, Documenting, and Approving Financial and Accounting Transactions.
- The voucher must include a justification that covers the 5 W within the comment section of the Internal Sales voucher or on the 258 character line description on the Internal Sales spreadsheet uploads or XML interfaces.
- The unit selling the goods or services must make every attempt possible for recording charges to the accurate chartfield string provided by the purchasing unit.
Units that have internal sales charged to sponsored projects should retain documentation as defined in the University of Minnesota Records Retention Schedule.