Billing Another Department (formerly known as Work Orders)

There are three methods to account for and/or transfer budget associated with work performed by one department and paid for by another.

In This Article:

  • Changes in the way we currently process recovery from FAMIS
  • Summaries of the Interdepartmental Service cost recovery methods
  • Detailed steps associated with each method

In our new financial system, recovery is accounted for as a revenue instead of a negative expenditure due to the new system’s budget checking and balancing protocols. This prevents net-zero expenditure budget.

In the new financial system, there is no equivalent of FAMIS Workorder Encumbrances. In fact, the concept of the FAMIS Workorder Encumbrances is not actually how these transactions are created in FAMIS. Budget is actually created first before an encumbrance can be set up.

The approval path for budget adjustments from one Services of Other Department (SOD) account to another will go to CON-AOSD to ensure that both requesting and performing departments authorize budget adjustment.

Direct Charge

  • Requesting department assigns budget for the performing department from the requesting department’s own fund and authority
  • Performing department post actuals directly to the requesting department’s fund, authority and project

Internal Billing

  • Both the performing and requesting departments establish budgets for the work performed.
  • Performing department incurs cost in own fund, authority and project.
  • Performing department submits a journal entry to recover the costs from the request department.

Nothing changes with regards to the Accounting -- all Services of Other Departments and Recovery accounts will remain (and they must balance).

The following two charts provide examples and the detail behind steps for each of the recovery methods:

Direct Charge:

Internal Billing: