Internal transfers are used to transfer funds in conducting interdepartmental
business. The internal transfer authorizes charges to be made to department
cost center/WBS elements for items such as goods and services from university
service departments (e.g., campus bookstores, office supply stores), for equipment
and supply transfers between departments, sharing costs among cost centers,
and correcting erroneous entries in deposits and invoices, among other uses.
Two types of internal transfers are used, as follows:
An internal transfer (document type ZD) is completed by the service
or initiating department and sent electronically to the receiving department
through the university's accounting system. This transaction requires
the electronic approval of all departments involved before it is posted
to the accounting system. Such transactions include payment for new employees'
moving expenses, equipment transfers between departments, sharing costs
among cost centers, and correcting errors in deposits and invoices.
An internal transfer (document type ZE) is electronically charged to
a cost center/WBS element and does not require approval through the accounting
system. Tentative approval for these transactions occurs in advance when
the department orders goods or services. Final approval of these transactions
occurs passively when a department does not object to the charges appearing
on their cost center/WBS element ledgers. Such transactions may include
direct billings for bookstore purchases, telephone services, postage charges,
and computing services in which departments receive supporting information
The internal transfer should include a description of the goods or services provided and should clearly describe the reason for the transfer. Also, different types of costs (general ledger accounts) should be shown as separate transactions, not as an aggregated cost on one internal transfer.
Any supporting documentation generated by the department initiating the transfer should be retained six years for audit purposes.