Did you know that the majority of payments received from external parties should typically be credited to a revenue account code (not an expense account code)? However, there are some scenarios when a credit to an expense account code is allowable, such as:
- Refunds or rebates from a vendor for previously purchased goods or services; or
- Reimbursements from employees for accidental usage of system resources (such as a personal purchase using a University P-Card).
While these are examples of allowable credits to expense account codes, remember that the majority of payments received from external parties should be credited to a revenue account code.
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If you have questions on this topic, contact our applicable subject matter experts within the Self-Supporting Funds section of UAFR’s Who to Ask list.
