MAA - Update MRAM - September 11, 2014 Michael Anthony Management Accounting & Analysis University of Washington

Recharge/Cost Center Billings Guidelines Agenda University of WashingtonManagement Accounting & Analysis

 Recharge and cost center  Type of self sustaining operation  Primarily charge internal (UW) users (those paying via a UW budget number)  In FAS – Budget Type 11; Program Type 20, 21, 22 or 23 Recharge\Cost Center Billings

 Billing guidelines  Must consistently and accurately bill all customers  Advanced billing for services/products not allowed  Internal (UW) users must be billed at no more than actual cost  Non-federal external (outside of UW) users may be billed at a rate higher then cost  In some cases WIP billing may be allowable (work with MAA and your Dean’s/VP’s office) Recharge\Cost Center Billings

 Billing guidelines (cont’d.)  Centers must track and record services/products by  Budget number (internal) to be charged or external customers charged  Services provided or products sold  # of units sold  Rate charged and total amount billed  This information may be required for federal audits  May also be useful in preparing future rate proposals Recharge\Cost Center Billings

 Billing guidelines (cont’d.)  Centers must bill users in a timely manner (usually monthly) based on actual usage  Larger centers that have significant costs/billings may wish to bill more frequently  Billing process depends on whether the customer is an internal or external user Recharge\Cost Center Billings

 Billing process  Internal billings done as an ISD transaction  Using FASTRANS strongly encouraged over paper  Decreases likelihood of errors  Quicker as revenue deposited directly into center budget  Can use Project Cost Accounting if requested Recharge\Cost Center Billings

 Billing process (cont’d.)  External users billed via invoice (contact Invoice Receivables for more information)  External users are charged Institutional Overhead  External users may be subject to sales tax and/or surcharges  Centers may be subject to Unrelated Business Income Tax (UBIT). Work with Tax Office Recharge\Cost Center Billings