Inter-Departmental Transactions

Matt Fajack, Vice President and Chief Financial Officer

With the implementation of MyUFL in 2004, Inter-Departmental transactions (expense to revenue (E2R) transactions between two UF departments) were required to have a purchase order (PO) setup by the buying department for the selling department to bill against. In July 2005, departments were allowed to process these transactions unencumbered but many chose to continue the use of POs. This results in unnecessary cost and overhead for the University.

During 2008, campus-wide work groups were formed to review the Finance modules in MyUFL in order to look for significant opportunities to improve University business processes. The Purchasing work group determined that the most critical business process change needed was the elimination of the use of the Purchasing module and the Accounts Payable module to record inter-departmental transactions. This business process improvement has also been discussed with the CSI group and at the quarterly Finance and Accounting Roundtable.

Beginning May 4, 2009, inter-departmental transactions will be required to be processed only as unencumbered transactions.

There are two types of inter-departmental vendors:

• ID Vendor – These are the University’s internal service providers that normally bill all departments on campus and maintain a high volume of transactions (PPD, CNS, Academic Technology, Campus Mail, etc.)
• Department Vendor – This type of vendor is the smaller department that normally only bills other departments on an occasional basis. 

  Department vendors will be required to eliminate the use of POs immediately. To process a transaction, department vendors will need to acquire the correct cost center chartfield string from their customer. An unencumbered E2R voucher should then be input by the department vendor in the Accounts Payable module to record this transaction.

  All existing POs to department vendors should be finalized or closed in the MyUFL system now as part of the year end close process.

  The University’s internal service providers are currently working to change their billing systems and will transition to processing unencumbered transactions by early FY10. Each internal service provider will communicate directly with their customers regarding this business process improvement. Several already have and for your convenience below are links to these communications.

  CNS Communication – http://lists.ufl.edu/cgi-bin/wa?A2=ind0904&L=UFACC-L&T=0&F=&S=&P=6616

  PPD Communication – http://lists.ufl.edu/cgi-bin/wa?A2=ind0904&L=UFACC-L&T=0&F=&S=&P=2829

  HealthNet Communication – http://www.healthnet.ufl.edu/