Do you have a self-supporting activity that has a mixed customer base of external customers, other university units, and/or grant funds? If so, take note that account codes 307920 and 307921 (which are both frequently used in these types of self-supporting scenarios) have recently been updated. See below for details:
- This revenue account code should be used to account for the sale of service and storeroom activities to other University of Illinois System units, grant funds, and/or external customers (up to the amount of the internal rate).
- The sale of service and storeroom activities are typically accounted for within a self-supporting fund assigned with a 3E fund type.
- However, these sales may also be made from self-supporting funds assigned with a 3Q fund type when there is a mixed customer base of both internal and external customers.
- The revenue accounted for within this account code should represent the amount assessed (at the internal rate) to the service center’s internal or external customers.
- 307921, Revenue from Incremental Upcharges to External Customers for Overhead Expenses:
- This revenue account code should be used to account for the incremental upcharge assessed to external customers for overhead expenses.
- This incremental upcharge represents an assessment to external customers for university overhead and is assessed to ensure external customers do not receive preferential pricing over grant funds or other internal customers within the University of Illinois System.
- This revenue account code is typically used with self-supporting funds assigned with a 3E fund type but can also be used with self-supporting funds assigned with a 3Q fund type as well, if/when the unit chooses to assess overhead charges to their external customers.
- For example, if a service center calculated their internal rate to be $10 per sale, and if the incremental upcharge to external customers to cover overhead costs was $5 (i.e., the external customer would be required to pay $15 total), then only $10 of that sale should be credited to 307920 while the $5 incremental upcharge should be credited to 307921.
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For further details on this topic, refer to the definitions and examples provided for these account codes within the Account Code Search application.
In addition, feel free to reach out to the applicable subject matter experts on this topic. They can be found by searching on “Self-Supporting Funds” within the Business and Finance Who to Ask list.
