Internal/External Sales

Departments initiating sales to other campus departments (interdepartmental sales) or to groups/individuals not paying with University funds must follow appropriate procedures to ensure the correct recording and reporting of revenue.

Internal Sales:

Departments requiring services or goods from another department on campus should complete a MEMFIS Interdepartmental Requisition and forward it to the selling department. Chargeback journal entries are completed by service departments on campus such as Physical Plant, Department of Residence, GBPAC, Car Pool, Print Services, Mail Services, Telecommunications, and ITS to record the sale of goods and services to user departments. Refer to procedures for completing journal entries and chargebacks as defined by Financial Accounting and Reporting Services for guidance on this process.

Departments selling goods or services on campus should price such services/items at a level marginally above their cost. Prices should be established to cover the cost of the item plus any identifiable overhead expenses and be calculated consistently. Prices should be charged uniformly to all customers and reviewed at least annually for appropriateness.

Departments requesting supplies from Campus Supply should use the electronic requisition process in Oracle to complete the order. Billing will be made to the identified account after receipt of the goods from Campus Supply. See the requisition process in MEMFIS for instructions on how to complete a requisition and receive on it. Billing is done at the end of each month.

External Sales:

Departments making sales to organizations or individuals, not paid with university funds, should consider the following when determining their sales procedures:

• All sales conform to the University’s policy 9.26 Competition with Private Sector.
• All sales must be recorded and reported in accordance with guidelines established by Cashiering, see Cash Handling Controls on Cashier web page.
• All sales must be supported by either an invoice or a receipt, application or registration forms are acceptable invoices where appropriate. Departments are strongly encouraged to use the University/Foundation Cash Receipts Journal (log) and accompanying receipt to track sales and provide customers with receipts.
• Determine if sale is subject to Iowa sales or use tax, and record in appropriate object code. Questions should be directed to vince.heuer@uni.edu.
• Retain documentation for all outstanding charges. At any time a department should be able to provide a list of all outstanding receivables. Annually, at the end of the fiscal year the information needs to be provided to Financial Accounting and Reporting Services. For questions regarding the collectibility of delinquent accounts contact brian.looby@uni.edu in the Office of Business Operations.