Procedure: 402-Revenue Accounting
General rule for cash receipts
Exceptions to the General Rule
- General Purpose Revenue Funds - Fund 101, etc.
- Auxiliary Enterprises - Fund 128, Activity 8
- Grants and Contracts - Funds 133,142,143,144,161, and 162
- Refunds of Expenditure
General rule for cash receipts
Revenue from the sale of goods or services to an internal customer is recorded as an internal sales credit. This revenue should be deposited to the same funding source from which expenses are paid. Revenue from the sale of goods or services to an external customer is recorded as receipts on a Receipts Deposit Form or a Bank Deposit Distribution Form. Use revenue codes when the selling department is PR funded. If the department is not PR funded, record the revenue as an external sales credit. The description on the deposit form should be sufficiently complete to allow persons reviewing the form to determine whether the transaction is recorded properly.
This general rule must be followed for recording all cash receipts except for General Program Revenue, Auxiliary Enterprises, Grants and Contracts, and Refunds of Expenditure. Each exception is discussed in more detail in the next section. The general rule and its exceptions are summarized in Appendix 1. Appendix 2 lists examples of commonly found revenue transactions along with an index. For assistance in handling situations not covered by the examples, contact Cash Management.
Exceptions to the general rule
General Purpose Revenue (GPR) Funds (Fund 101, etc.)
Because the State of Wisconsin does not permit the recording of receipts on GPR funds, you must record all revenue from sales as sales credit to the appropriate sales credit class code. A complete list of GPR funds can be found in the chapter Chart of Accounts.
Auxiliary Enterprises - (Fund 128, Activity 8)
Sales and services of an activity 8 auxiliary enterprise should be recorded as receipts, regardless of the source of the revenue. Use the general rule for recording all other Fund 128 activity.
Grants and Contracts - Funds 133,142,143,144
Only revenue received from the donor or granting agency is recorded as receipts in the grants and contracts funds. Gift receipts and non-federal grant and contract payments on account must be deposited as receipts, generally to fund 133 only by Research and Sponsored Programs. Trust Fund receipts should be recorded as receipts to fund 161 or 162 only by UW System Trust Funds Office staff. Federal grant payments on account should be deposited as receipts to the appropriate 14X fund only by Research and Sponsored Programs. All other revenue is recorded as internal or external sales, depending on the source of the revenue.
Refunds of expenditure should be recorded as negative expenditures to the funding source and class code for the original expenditure to which the transaction relates. Prior year credits shall be handled according to Appendix 3. Refunds should include social security, taxpayer ID# and vendor address where required by the class code. The description on the deposit form should be sufficiently complete to allow persons reviewing the form to determine whether the transaction is recorded properly. Supporting documentation should be attached for individual transactions exceeding $500.
Procedure: 402-Revenue Accounting