Internal transactions

• Internal charges occur when one university department sells goods or services to another university department. In order to avoid overstating total revenues and expenses in the university's audited financial statements we are required to "net" internal revenues against internal expenses. These are in fact recorded on a separate line in the financial statements with the total across all funds equalling zero.
• To accomplish this we have established two ranges of account codes, one for internal recoveries and one for internal charges. Departments selling goods or services to other university departments should record the recovery or "revenue" in their accounts using account codes in the 5900-5999 range. The University department receiving the charge should have the "expense" recorded in their account using a account code in the 9200-9299 range.  At year-end Accounting Services will total up all the 92xx and 59xx entries and these must net to zero.
• The only exception to this is when a university department sells goods or services to an agency that is not considered part of the university reporting entity, such as University Club.  Agencies can be identified by FAST codes (fund & organization codes) starting with "9". In these cases sales are considered external sales and the 92xx -59xx coding is not appropriate. The department receiving the recovery would then use an account code in the 5700-5899 range to reflect an external sale.
• Please DO NOT use 59xx or 92xx account codes on Purchase Requisitions when purchasing goods or services from outside vendors, or on Cash Reports when cash is received from outside parties.  If you have questions regarding internal versus external sales please contact Accounting Services.
• There are specific internal revenue and expense codes that are used when making a contribution or donation between units at UVic or clearing out small balances in accounts before they are closed. These codes can only be used in these two circumstances. Transactions such as reimbursements for expenses should be done by either a different 59xx/92xx internal charge or by moving specific transactions (or portions of) between accounts. The revenue code 5999 should be used to credit revenue to the unit receiving funds and the expense code 9299 should debit the expense to the unit contributing the funds. These two revenue and expense codes must be used together.