Policy/Procedure: 402-Revenue Accounting
Per State Statutes, (Chap. 20.906 Wis. Stats.), payments/receipts are to be deposited within 5 business days. All revenue generated as a result of the sale of University of Wisconsin Madison goods or services belongs to the University and must be recorded to the University SFS accounting system. This revenue must be deposited direct to a UW-Madison Deposit Account or through the Bursar's Office using a Receipt/Sales Credit Deposit form. For those departments collecting larger sums of money, please make deposits daily or more frequently than once a week in order to avoid theft or loss.
This revenue may not be deposited with the University of Wisconsin Foundation or to an individual's private bank account. It may not be deposited into the University's petty cash accounts, replenishable checking accounts; nor may it be used to make direct purchases of supplies, equipment, or services.
For those checks received with a UW-Madison logo and the address of 21 N. Park Street, Suite 5301, mark the check as “void” and send it back to Accounting Services File Room, 21 N. Park Street, Suite 5301, Madison, WI 53715.
Many departments have receipts and refunds because of the sale of goods and services, gifts, and grants. Cash receipts from a large variety of sources and for a wide range of purposes require that departments use proper accounting procedures. This chapter focuses on accounting procedures for cash receipts. Refer to the policy on revenue producing activities which includes instructions regarding revenue from non-University sponsored activities.
- Request payments to be submitted in US dollars.
- Check with your Dean's/Divisional Office and Department to receive information on internal policies and procedures related to revenue collections.
- If your customer is asking to make payments by Wire/ACH, instruct them to include your Department ID and reference number in the Wire/ACH reference/memo field. See Wire - Incoming Department Wire/ACH Form for procedures on notifying Cash Management and requesting bank information. Use the memo field on the bottom of the form to request bank information.
- All deposits using account code 9050, 9051, 9060, 9061, and 9062 require a program code being either 0,1,2,3,4,6,8,9,F and cannot be a program code R.
- All revenue deposits involving Funds 133, 144, or 182 which do not use account code 9050, 9051, 9060, 9061, and 9062, please submitted to Research and Sponsored Programs at 21 N. Park St., Suite 6401, Madison, WI 53715.
- All revenue deposits involving Funds 233 which do not use account code 9050, 9051, 9060, 9061, and 9062, please submit to Accounting Services at 21 N. Park St., Suite 6101, Madison, WI 53715.
- All deposits involving Fund 161 require detail backup and must be submitted directly to University of Wisconsin System Trust Funds, 780 Regent Street, Madison, WI 53715; ATTN Trust Funds.
- External customer
- Internal customer
- General Purpose Revenue Earned (GPR)
- Grant, Contract, or Agreement
- Vendor Refund
- External customer - A customer from other state agencies and the general public who is not from UW-Madison or any UW institution.
- Internal customer - A customer from UW-Madison and any UW System institution.
- General Purpose Revenue Earned (GPR)- Revenue received by a state agency related to GPR appropriations in the course of accomplishing program objectives and for which no program revenue appropriation is made.
- Gift - An amount received that meets all of the following criteria:
- Provides support for broadly defined activities such as professorships, scholarships, fellowships, traineeships, research and instructional programs. The donor may restrict the use of the funds to a specific program area or purpose.
- No detailed fiscal or technical reports are required, either periodic or final. However, the principal investigator may provide the donor with a brief summary of the supported activities and a statement that expenditures were made in accord with the intent of the gift.
- Rights to any patents or copyrights are not claimed by the donor.
- No provisions, such as delays or advance notice, are imposed by the donor concerning publication or dissemination of data and information derived from the activity.
- The funding is voluntary and irrevocable by the donor.
Gifts are not: fees for laboratory and other services, revenues from ticket sales, registration fees, payments for facility use, or payments on contractual or business arrangements.
- Grant, Contract, or Agreement - A legally binding instrument between the Board of Regents of the University of Wisconsin System and a Non-federal or Federal sponsor that provides support for extramural research, instruction, or other institutional activities. A typical grant, contract or agreement has a defined scope of work and budget, requires a project progress report, fiscal monitoring of receipts and expenditures and a financial expenditure report. The grant, contract or agreement will be subject to audit by the sponsoring agency or their designees.
- Revenue - An amount received from the sale of goods or services, registration fees, investment income, royalties, fines, or rental of property or space.
- Vendor Refund - An amount received as a rebate or refund from a vendor or payee for a price adjustment, overpayment, returned merchandise or duplicate payment. The amount relates to a previously recorded expenditure on a sum certain appropriation in the same fiscal year. In general, this amount is not anticipated during budget development. The refund should reduce the department's expenditures.
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 Slip 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 policy must be followed for recording all cash receipts except for General Program Revenue, Auxiliary Enterprises, Grants and Contracts, and Vendor Refunds. For assistance, contact Cash Management.
- General Purpose Revenue Funds - Fund 101, etc.
- Auxiliary Enterprises - Fund 128, Program 8
- Trust Funds 161 and 162
- Vendor Refunds
The State of Wisconsin does not permit the recording of receipts on GPR funds. Record all revenue from sales as sales credit to the appropriate sales credit account code. See the complete list of GPR funds.
Sales and services of an Program 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 programs.
Trust Fund receipts should be recorded as receipts to fund 161 or 162 only by UW System Trust Funds Office staff. Send checks to University of Wisconsin System Trust Funds, 780 Regent Street, Madison, WI 53715; ATTN Trust Funds.
Vendor Refunds should be recorded as negative expenditures to the funding source and account code for the original expenditure to which the transaction relates. Prior year credits shall be handled according to Vendor Refund Form Instructions.
- How can I set up a deposit procedure for our department?
- I'm not sure what fund, Dept ID, account code, or program code to use.
- How can I verify that the bank received my deposit?
- How do I handle return items?
- Can department deposits be sent through Campus mail?
- Can I still drop off my deposit at 21 N. Park Street?
- If our deposit drop-off point on campus is no longer convenient, what other sites are available for drop off?
- How do we change our current deposit drop-off location?
- Can we use plastic bank bags instead of the cloth bags? How do we get plastic bank bags?
- What information needs to be recorded on the outside of the bank bag?
- When we drop off bank bags at a drop-off site, how do we get our bank bags back?
- If we’re missing one of our cloth bank bags, how do we locate it?
- How do we get copies of our deposit tickets back?
- If your department collects large sums of money and/or frequently collects money, deposit tickets can be requested from Cash Management so your department can prepare deposits to be delivered or dropped off at the bank or at an approved armored car pick-up point on campus. Find the Bank Deposit Slip Order Form Instructions and Bank Deposit Slip Order Form on the web site. To avoid theft or loss, Accounting Services recommends that departments make deposits daily or at least weekly using deposit slips and sealable plastic bank bags. The Plastic Bank Bag Order Form Instructions and Plastic Bank Bag Order Form are also available on the web site.
- If your department collects money infrequently, deposits can be prepared using the Receipt/Sales Credit Deposit Form to be dropped off and processed by the Bursar’s Office. These deposits should not be sent through Campus mail, especially if they contain cash.
- Contact Cash Management at email@example.com to obtain information about setting up a deposit procedure, to obtain deposit slips, and/or bank bag.
- Accounting Services has information regarding codes located on their web link: http://www.bussvc.wisc.edu/acct/coding.html.
- Log on to the WISDM web site and view all fund activity to verify that a deposit has been credited to your department's funding.
- WISDM information is updated when Accounting Services receives verification that your deposit was received at the bank.
- Contact Cash Management at firstname.lastname@example.org if your deposit transaction has not been posted.
- The Cash Management team forwards return items to departments with the fund coding that is being debited.
- According to UW-Madison regulations set forth by the University of Wisconsin System Administration FPPP, a $20 fee should be assessed for checks not paid by the bank on which it is drawn, and deposited into 136-980100-R-9200. You may reserve the right to refuse check payments from students/customers with a history of NSF checks.
- If your department collects money infrequently, deposits can be prepared using the Receipt/Sales Credit Deposit Form, in which case, they need to be dropped off at the Bursar’s Office. Deposit should not be sent through Campus mail, especially if they contain cash.
- If your department collects large sums of money and/or frequently collects money, deposit tickets can be requested from Cash Management so your department can prepare deposits to be dropped off at the bank or an approved armored car pick-up point on campus. Find the Bank Deposit Slip Order Form Instructions and Bank Deposit Slip Order Form on the web site. The Plastic Bank Bag Order Form Instructions and Plastic Bank Bag Order Form are also available on the web site..
There is no longer a general armored car pick-up point at 21 N. Park Street. The new armored car pick-up points are:
- 333 East Campus Mall either on the first floor at the U.S. Bank branch office
- Overnight bank vault on the first floor by the elevators going up to the Bursar's Office
- Bursar's Office Cashier's window on the tenth floor #10501
To find out where other pick-up points are located on campus, contact Cash Management at email@example.com. Indicate who you are, your e-mail, where you are located, and that you are requesting an alternative drop-off site other than 333 East Campus Mall.
- Contact Cash Management at firstname.lastname@example.org. Indicate who you are, your e-mail, where you are located, and that you would like to know where other armored car pick-up points are located on campus.
- Contact Cash Management at email@example.com. Indicate who you are, your e-mail, where you are located, and what new location you will be choosing.
- Yes, you can use plastic bank bags. The Plastic Bank Bag Order Form Instructions and Plastic Bank Bag Order Form are available on the web site.
- Provide the following information on the outside of bank bags:
- Plastic: your department’s full name, the name of a contact person, phone number, e-mail, and DeptID. (6-digit code). The Plastic Bank Bag Order Form Instructions and Plastic Bank Bag Order Form are available on the web site.
- Cloth: These are being discontinued – see Cash Management Memo dated December 1, 2009. If you have specific needs which still require these cloth bank bags, then please put on the bag the following information: name and address of your pick-up point (which is where the bag will be returned), your department’s full name, the name of a contact person, phone number, e-mail, and DeptID (6-digit code).
- Plastic bank bags will not be returned by US Bank. Please make sure you keep a copy of your deposit ticket and look up the amount of the deposit on WISDM two to three business days after the deposit has been dropped off at an Armored Car drop off site or US Bank.
- Contact Cash Management at firstname.lastname@example.org. Indicate who you are, your e-mail, where you are located, where the bag was dropped off for the armored car pick up, and the approximate date it was dropped off.
- Keep a copy of your deposit ticket and verify the amount was received by looking it up on WISDM. The description field on WISDM will say DEPOSIT followed by the full deposit number. The journal date field will show the date the bank received the funds. If this amount does not match your deposit ticket, contact Cash Management at email@example.com. Indicate your name, department, funding, deposit slip number, and the date of the deposit. Cash Management will look up the deposit on line and send you a copy so you can determine why there is a discrepancy.
University departments are responsible for collection and deposit of sales tax, when appropriate, and are liable for penalties assessed for failure to do so. The determination of whether or not an item is taxable should be made prior to depositing the revenue with the Bursar's office or through direct deposit. Accounting Services is responsible for processing the necessary paperwork and submitting the collected taxes to the Department of Revenue.
The gross taxable amount of the revenue should be identified on the appropriate deposit form with the taxable county code if appropriate.
For all accounts receivable invoicing done on campus, please see instructions on Accounts Receivable Invoices .
For those departments who do not use their Dean's/Divisional office for central collections and they do not have adequate separation of duties, please contact Cash Management for discussions on options listed below. Send e-mail to firstname.lastname@example.org.
- Option One:
- Request your customers to pay on line through a web application process called UW Madison E‑Payment processing services (E‑Pay).
- Option Two:
- Develop separation of duties either internally within your department or using your Dean’s/Divisional Office to help locate a separate collection point within your School/Division.
- Option Three:
- Use Cash Management as a collection point for your customers. See instructions for Accounts Receivable Invoices. To use this option, invoice design must be approved by Cash Management before use. Customers must sent their money direct to Cash Management or wire funds to our main deposit account.
All accounts receivable invoice forms sent to Cash Management for deposit must meet the invoice numbering and financial coding standards in order for Cash Management to identify receipts. Please work with Cash Management for review and approval before using Cash Management as a customer payment location.
Please note: Check with your Dean's/Divisional Office and Department to receive information on internal policies and procedures related to revenue collections.
Deposits can be made at armored car drop off sites or directly at US Bank. Bank Deposit Slips are ordered through US Bank and are preprinted with the bank routing and deposit bank account number. There are a special set of numbers on the bottom of these bank deposit slips which Cash Management staff uses to identify individual deposits on the daily bank statement. Please provide Cash Management with one string of funding code which will be used for your department to collect all revenue related to this set of deposit tickets.
On the plastic bags print or attach a label with only the following information:
- department six digit ID number
- full name of your department
- contact name
- phone number
Note: On the plastic bag, do not write the deposit amount or the bank account number.
Please write the bag number on your deposit ticket. Send the original (white) to the bank with your deposit and keep all others for your records. Tear off the stub which has pre-printed bag number information. Keep this stub and indicate the date of the deposit, amount, and the last 4 digits of the bank account number (if known).
When dropping off your deposit bag at the pick up location, write the bag number on the armored car service log sheet along with the other information the log is requesting. Each drop off site may have their own procedures in place for filling out the log.
Once the above procedure is followed, we will no longer need to have plastic bags returned. As of February 1, 2010, US Bank will not be returning deposit bags back to the departments. Let Cash Management know if you have any questions.
If a department needs to record sales tax on these revenues or to transfer them out to other department/revenue strings, please use the Receipt/Sales Credit Transfer Form to distribute these funds and to accurately collect sales tax.
Deposits using the Receipt/Sales Credit Deposit Form are dropped off at the Bursar's Office, 333 East Campus Mall #10501. Never send deposits through campus mail. Steps are as follows:
- Complete a Receipts/Sales Credit Deposit Form.
- Attach checks and the adding machine tape showing the detail and total. All checks should be endorsed by the depositing department using the following language, "For Deposit Only to US Bank Account 0226."
- Attach any loose currency and coins with the adding tape. Band/roll currency/coins when when applicable.
- For foreign checks, complete a separate Receipt/Sales Credit Deposit Form for each foreign check.
Note: Foreign checks require special handling by the Bursar's office.
The deposit will be counted in the presence of the depositor and validated. One validated copy will be returned to the depositor for his/her records.
Deposits made after 2:00 p.m. will be validated. However, the deposit will be included in the next day's business.
A self-addressed campus envelope should be included with the deposit if the depositor cannot wait for the validated copy of the Receipts or Receipt/Sales Credit Deposit Form.
This form is used when your department is expecting either an Incoming International Wire/ACH or an Incoming Domestic Wire/ACH.
When your customer is asking to make payments by Wire/ACH, instruct them to include your Department ID and Invoice number in the Wire/ACH reference/memo field. See Wire - Incoming Department Wire/ACH Form for procedures on notifying Cash Management and requesting bank information. Use the memo field on the bottom of the form to request bank information.
To initiate a refund back to the source who sent the receipt, use the Refunds of Receipts/Sales Credits form found on the Accounting Services Forms Index web page at http://www.bussvc.wisc.edu/acct/forms.html#ror/sc. Send the approved, signed form back to cash Management at Accounting Services, 21 N. Park St., Suite 6101, Madison, WI 53715-1218.
To correct the coding on a prior deposit use the Receipt/Sales Credit Transfer Form and send to Cash Management, 21 N Park St., Suite 6101, Madison, WI 53715-1218.
- Department Deposit Memo from Darrell Bazzell and Don Miner
- Armored Car Service Change Form
- Armored Care Service Contract
- Memo (September 14, 2010): Accounts Receivable Invoice; Receipt Address Change to Cash Management, 21 N. Park St., Suite 6101
- UW Foundation Policies
Who should know this procedure?
Deans, Directors, and staff dealing with revenue.