A valid account charge number and authorization for work must be provided to the service center prior to allowing user purchase of service center services. 

This authorization allows the center to bill the designated account for services. The authorization remains with the service center as backup for billings.

It is recommended that the service center incorporate into their authorization request form:

•  approval from the person authorized to charge the account;
•  a “maximum” or “not to exceed” dollar amount, or explicitly state   “unlimited”;
•  an end date if it is a sponsored account;
•  a list of who is allowed to charge to the account.

“Uploads” or “Feeders” are available in Stanford's iJournals system for uploading the large numbers of internal billings. This allows the center to set up its charges on a text formatted spreadsheet, which can then be uploaded directly into iJournals. The service center manager should contact the iJournals Contact for information on using these methods.

Service center charges should be made using the 58320 expenditure type, unless a more descriptive and specific expenditure type exists (e.g. 58315 SU Photocopy, 58810 SU Lab Supplies, etc.).

It is helpful to use the same journal description(s) for all regular service center charges. This helps the Controller's office, OSR and RAPC identify billing transactions more readily when searching for data in the accounting system. It is also helpful to include the approved service center rate in the journal description, or the phrase “service center rates approved by RAPC per letter of September 14, 2014.” The time period for which services are being billed should also be specified in the journal.

• 12 months of income must be posted against 12 months of expenses
• Controls to prevent non-billing or double-billing must be implemented
• Create an invoice to bill users and uniquely number each invoice
• Use invoice number in the Dept. Ref. Section of journal or in the line description
• Post monthly allocation journals (charge all users for their month’s usage on the monthly journal, do not post by users multiple months of usage i.e. quarterly charges per user per journal).

Service centers use the following revenue object codes to record income for their sales to internal users:

• 48110
• 48115
• 48120
• 48129 etc.

Intra-departmental sales should be posted to 48210, 48215, etc. Use of multiple revenue object codes enables a service center to track its income from various sources or for various services.

Subsidy income should be booked into an object code that the service center reserves for subsidy entries alone; the suggested object code is 48180. Fiscal year end subsidy entries should be posted to 48180 on an iJournal with a description field stating that the entry is a fiscal year end subsidy. If the subsidy entry can be made before year end, i.e. the department has already determined what amount would be allocated to the service center at the beginning or mid-year; the center should post the entry as the funds are available. Also, the description should state that the entry is a subsidy.

Sales (income) should never be recorded as a credit to an expenditure code. Credits for expenses are only used to record amounts received for returned goods and other expense related adjustments. The improper use of such credit entries will understate both service center revenue and expense in the breakeven calculation. As a result, the service center's rate might have to change unnecessarily to adjust for the larger surplus or deficit that would accumulate and be carried forward that year, and the service center's users would be affected by such rate change, as well as University expenditures being recorded incorrectly.

The purchases in inventory are recorded in the service center’s PTA with Object Code 11405 until a sale is recorded against a specific account. When the “sale” is made, the "inventory" account is credited for the cost of the item sold, while the service center account is credited for the cost associated with selling that item (the markup rate). These two are combined for the charge to the user.

On very rare occasions the item sold out of "inventory" is a University fabrication.  Contact Property Management for further assistance or clarification.

 See: Exhibit C: Journal Examples for Service Center Accounting Entries revised for PTA

Allocation Journals Require Prior Approval

Administrative Guide Memo 38.11.d “Approvals” states that  before an allocation journal is submitted to the accounting system, the department processing the journal must have received approval from an authorized individual for each activity/account charged.  This can be a “blanket” approval for regular ongoing costs allocated in a consistent manner.  Approval can be evidenced in writing in a memo, on a request form (SU-13) or via electronic means.  The department originating the journal must maintain documentation of written approval. 

If you cannot obtain prior approval use the New iJournal Template.  Follow up on these journals to ensure timely approval.

A service center may charge an external user a premium rate above what is  charged to internal users if this is proposed and approved by RFCS.

When billing external users, the minimum rate charged must include sales tax if any tangible property is sold.  Services are not subject to sales tax.