MAA - UpdateMRAM - September 11, 2014

Michael AnthonyManagement Accounting & Analysis

University of Washington

Recharge/Cost Center BillingsGuidelines

Agenda

University of Washington Management Accounting & Analysis

Recharge and cost center Type of self sustaining operation Primarily charge internal (UW) users (those

paying via a UW budget number) In FAS – Budget Type 11; Program Type 20,

21, 22 or 23

Recharge\Cost Center Billings

Billing guidelines Must consistently and accurately bill all

customers Advanced billing for services/products not allowed Internal (UW) users must be billed at no more

than actual cost Non-federal external (outside of UW) users may

be billed at a rate higher then cost In some cases WIP billing may be allowable (work

with MAA and your Dean’s/VP’s office)

Recharge\Cost Center Billings

Billing guidelines (cont’d.) Centers must track and record services/products

by Budget number (internal) to be charged or external

customers charged Services provided or products sold # of units sold Rate charged and total amount billed

This information may be required for federal audits May also be useful in preparing future rate proposals

Recharge\Cost Center Billings

Billing guidelines (cont’d.) Centers must bill users in a timely manner

(usually monthly) based on actual usage Larger centers that have significant

costs/billings may wish to bill more frequently

Billing process depends on whether the customer is an internal or external user

Recharge\Cost Center Billings

Billing process Internal billings done as an ISD transaction Using FASTRANS strongly encouraged over

paper Decreases likelihood of errors Quicker as revenue deposited directly into center

budget Can use Project Cost Accounting if requested

Recharge\Cost Center Billings

Billing process (cont’d.) External users billed via invoice (contact

Invoice Receivables for more information) External users are charged Institutional

Overhead External users may be subject to sales tax

and/or surcharges Centers may be subject to Unrelated Business

Income Tax (UBIT). Work with Tax Office

Recharge\Cost Center Billings