Financial Processing > Standard Transaction E-Docs

Internal Billing

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The Internal Billing (IB) document is used to bill for goods or services provided by one university department to another university department, reflecting income to the provider and expense to the customer.

pencil-small     This document is not used to record the transfer of capital equipment between university accounts. Normally this type of transaction is recorded via a Transfer of Funds (TF) document.

More:

https://finalt.qual.ebsp.msu.edu/kfs-qa/static/help/button.gifDocument Layout

https://finalt.qual.ebsp.msu.edu/kfs-qa/static/help/button.gifProcess Overview

https://finalt.qual.ebsp.msu.edu/kfs-qa/static/help/button.gifExample

Document Layout

An IB document has its own unique tab called Items in addition to the standard financial transaction tabs.

go-arrow-red     For information about the standard tabs such as Document Overview, Notes and Attachments, Ad Hoc Recipients, Route Log, Accounting Lines, Accounting Lines for Capitalization, Create Capital Assets and Modify Capital Asset tabs, see Standard Tabs under Overview > KFS E-Doc Fundamentals.

 


 

Items Tab

The Items tab is optional; however, if you choose to use this tab, Quantity and Item Cost are required fields. This tab does not have any impact on the Accounting Lines tab, nor does it need to balance to the accounting lines. Therefore, filling out the Items tab does not automatically update the total of the accounting lines.

WorFC25

Items tab definition

Title 

Description

Date

Optional. Enter the date of service or select it from the calendar cal.

Stock #

Optional. Enter the stock number for the goods or services provided.

Description

Optional. Enter the description of goods or services.

Quantity

Required. Enter the quantity of goods or services provided.

UOM

Optional. Enter the unit of measure.

Item Cost

Required. Enter the cost per item for goods or services.

Total

Display-only. The extended cost is calculated when you click add to add the line.

 

Process Overview

More:

https://finalt.qual.ebsp.msu.edu/kfs-qa/static/help/button.gifBusiness Rules

https://finalt.qual.ebsp.msu.edu/kfs-qa/static/help/button.gifRouting

https://finalt.qual.ebsp.msu.edu/kfs-qa/static/help/button.gifInitiating an Internal Billing Document

 

Business Rules

         Negative accounting line amounts are allowed.

         There must be at least one accounting line in the Income section and one accounting line in the Expense section.

         The total in the Income section must equal the total in the Expense section in the Accounting Lines tab.

         The KFS automatically generates cash and fund balance object code offset entries as defined by the information entered into the document.

         The Account field has the following restrictions:

Sub fund group code restrictions for IB documents

Sub Fund Group Code

Description

Restriction

GC

GEN CMP - Cash Management Program

Unallowable

GD

GEN Dean Contingency

Unallowable

GP

GEN Summer School

Unallowable

 

Sub fund group code restrictions by Object Type for IB documents

Sub Fund Group Code

Object Type

Description

Restriction

IN

GP

GEN Summer School

Unallowable

 

GA

GEN Operations

Unallowable

 

GC

GEN CMP - Cash Management Program

Unallowable

 

GD

GEN Dean Contingency

Unallowable

 

GL

GEN TLE - Teaching Learning Environment  

Unallowable

 

GR

GEN Research 

Unallowable

 

GS

GEN Specials  

Unallowable

 

GT

GEN Outreach 

Unallowable

 

GU

GEN University  

Unallowable

 

RA

ERF MAES  

Unallowable

 

RE

ERF MSUE  

Unallowable

EX

DU

DES Undistributed Gains and Losses  

Unallowable

 

NB

END Unrestricted Funds Functioning End  

Unallowable

 

NC

END Charitable Remainder Trust

Unallowable

 

NE

END Unrestricted Term End Principal  

Unallowable

 

NG

END Unrestricted True End Principal  

Unallowable

 

NM

END Restricted Term Endowments Principal  

Unallowable

 

NR

END Restricted Funds Functioning End  

Unallowable

 

NU

END Undistributed Gains and Losses  

Unallowable

 

NX

END Restricted True Endowments Principal  

Unallowable

 

RU

ERF Undistributed Gains and Losses  

Unallowable

 

The Object Code field has the following restrictions:

Contracts and Grants Sponsored Programs object level codes are not allowed.

Capital object codes may not be used on an Income line in the document.

Object type code restrictions for Internal Billing documents

Object Type Code

Description

Restrictions

IN

INCOME-CASH  

Allowable

EE

EXPENDITURE NOT EXPENSE  

Allowable

EX

EXPENSE EXPENDITURE

Allowable

 

Object code sub type restrictions for Internal Billing documents

Object Type Code

Description

Restrictions

BU

Budget-Only Object Code

Unallowable

CP

Construction Process

Unallowable

FR

Fringe Benefits

Unallowable

GI

Gifts

Unallowable

HW

Hourly Wages

Unallowable

IV

Investments 

Unallowable

MT

Mandatory Transfers

Unallowable

PL

Capital Assets

Unallowable

RE

Reserves

Unallowable

SA

Salary and Wages

Unallowable

ST

State Appropriations

Unallowable

TF 

Transfer of Funds 

Unallowable

TN

TRANSFERS GENERIC

Unallowable

WO

Write-Off Expenses

Unallowable

 


Routing

The IB document routes based on the account numbers used on the document as follows:

The fiscal officer for each expense account must approve. See note below.

Organization review routing occurs for the organization that owns each account.

Sub-fund routing occurs based on the sub-fund of each account.

         The Accounting Office will need to approve the document.

If grant funds are involved the document will need approval from Contract and Grants.The document status becomes 'FINAL' when the required approvals are obtained and the transaction is posted to the G/L during the next G/L batch process.

exclaim     The IB document does not route to the fiscal officer for Income accounts on the Income side of the document.

http://int.kfs.kuali.org/kfs-int/static/help/ImagesExt/image45_128.png

 
Initiating an Internal Billing Document

1.     Select Internal Billing from the Financial Transactions submenu group.

2.     Log into the KFS as necessary.

A blank IB document with a new document ID appears.

3.     Complete the standard tabs.

go-arrow-red     For information about the standard tabs such as Document Overview, Notes and Attachments, Ad Hoc Recipients, Route Log, Accounting Lines, Accounting Lines for Capitalization, Create Capital Assets and Modify Capital Asset tabs, see Standard Tabs under Overview > KFS E-Doc Fundamentals.

4.     If entering an Internal Billing transaction for a capital asset

Either enter the appropriate existing asset number in the Modify Capital Asset tab or enter a new asset number in the Create Capital Assets tab.

5.     Complete the Items tab (optional).

6.     Click buttonsmall_submit.

7.     Review the General Ledger Pending Entries tab.

Accounts in the Income section are credited when the amount is positive, and debited when the amount is negative. Accounts in the Expense section are debited when the amount is positive, and credited when the amount is negative. This document automatically generates cash offset entries to cash or fund balance object codes.

8.     Review the Route Log tab.

The document is routed to the fiscal officer for each expense account used in the Accounting Lines tab. The Route Status shows 'ENROUTE'.

go-arrow-red     For information about the Route Log tab, see Route Log.

9.     Appropriate fiscal officers and organization reviewers approve the document.

go-arrow-red     For more information about how to approve a document, see Workflow Action Buttons.

 

Example

The Psychology department provided evaluation services for two days to the Dean Arts and Sciences department and needs to bill for these services.

The income of $300.00 is recorded to the Evaluation and Testing object code 5023 on the Psychology account 1031400, and the expense of $300.00 is charged to the Evaluation object code 5024 on the Dean and Sciences account 1023200.

The IB document provides a simple mechanism for departments to charge one another for services rendered.