General Ledger Transfers
General Ledger (GL) Transfer codes are to be used only within each section. They should not cross sections. Never use a Mandatory transfer code on one side of the transaction and a Facility transfer code on the other side of the transaction. General Ledger (GL) Transfers are divided into the following sections.
Mandatory transfer codes are to be used when we are required by a third party to provide funds; for example, required matching on grants, transfers to cover debt payments and mandatory matching on financial aid and/or loans. Mandatory transfer codes should not be used when funding a deficit on a grant.
Facility transfer codes are to be used when one of the two cost centers involved is a plant fund account, 7XXXX.
Other transfers are to be used when none of the other circumstances fit the situation. An Other transfer is used when one department is providing financial support for another department. If an expense is charged to the wrong department, a transfer code is NOT used. The entry for a correction of a charge would credit the inappropriate account and debit the appropriate account.
Indirect cost transfers
Indirect cost transfer codes are to be used whenever we are booking indirect cost expenditures and revenues. While we are giving the indirect cost revenues we have collected from grants to another department, the original revenue typically comes from a granting agency. The grant agency revenue is counted as new money to the university. The collection of the indirect cost revenue from the grant to the university cost center is not new money to the university and therefore is recorded using transfer codes for easy elimination.
Subsidy transfer GL's are to be used when distributing subsidies.
Intra fund transfers
Intra fund transfer GL's are to be used when transferring funds between cost centers in the same business area; for example, between two general fund cost centers or between two designated fund cost centers.
Faculty Salary/Benefits are to be used by faculty personnel for faculty teaching in other departments.
Third party and in-kind transfers
Third party and in-kind transfer GL's are to be used only for recording those types of transactions. We use transfer codes because those codes are eliminated for financial reporting purposes.
DO NOT use transfers codes on Custodial cost centers.