Department Deposit For Reduction of Expense
A general operating rule for deposits is payments received from an external organization should be deposited to a revenue account. Reduction of Expense is not common for deposits but may occur. The following are guidelines:
- A refund check is received for an overpayment of actual cost due
- Purchasing issues resulting in a vendor issuing a check back to KU
- Repayment is received for posted transactions that aren’t allowable (ex. unauthorized PCARD charges)
- Payment is received from KUEA for expenditures made using state funds which appropriately should have been paid by KUEA funds
When entering a department deposit with reduction of expense, department should indicate YES on the Miscellaneous Deposit Form, make reference in the comments of the voucher number and date of the original expenditure and other supportive notes.
FACC reviews all Miscellaneous Deposit Forms indicating reduction of expense or with an expense code in the funding. If the deposit does not apparently meet general guidelines or provide supporting documentation for assessment of the accounting, Shared Service Center will be consulted to re-evaluate the use of reduction of expense coding.