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Procedure: 6-17

Effective: October 24, 2001

Owner: University Comptroller

Latest Revision: April 30, 2002

Authorizing and Describing Direct Billing

Procedure Steps

Scope | System References | Policy | Responsibility | Distribution | Ownership

Scope

This procedure describes how direct billing is authorized and used by approved internal service providers (isp).

System References [Top]

See "Expenditure Batches in GM"

Contact Information for Internal Service Providers

Policy [Top]

See University Policy VI.A.6 "Payments to University Departments"

Responsibility [Top]

The internal service providers that have been authorized to directly bill other University affiliated entities for goods and service are responsible for processing those charges according to this procedure.

Distribution [Top]

The following Internal Service Provider (isp) units may use this procedure to bill for services:

  • Facilities Management
  • Business Operations
  • Athletics
  • Information Technology and Communications
  • Other ispís as authorized by the University Comptroller.

Ownership [Top]

The University Comptroller is responsible for ensuring that this procedure is necessary, reflects actual practice, and supports University policy.

Procedure Steps

Authorization to Use Direct Billing

To obtain authorization to use the Direct Billing process, a service department must submit a written request to the University Comptroller. This request should include:

  • Approximate monthly volume. (Estimate both the number of documents to be processed and the total dollar amount.)
  • A copy of the current rate schedule.
  • A description of the method used to determine the amounts to be charged. If a support service rate has already been approved by the Department of Financial Analysis, simply provide date of approval.

Using Direct Billing

Responsibility
Action
 
 
Direct Billing Department
1.
Notifies all departments to which goods/services are provided that Direct Billing will be used, and which will be used when a project expenditure is charged.
 
 
Department Requesting Goods/Services
2.
Forwards a requisition or service request to the Direct Billing Department. This form should include the PTAO to be charged.
 
 
Direct Billing Department
3.
Furnishes goods or services to the requesting department. (Note: All ispís whose customers arrive at their site are strongly encouraged to accept only PTAO information printed by the Integrated System PTAO Card Generator. This will reduce, but not eliminate, the number of circumstances in which invalid PTAO combinations are provided by customers.)
 
 
 
4.
Prepares Grants Management Cost Transfer entry, charging the requesting department's PTAO and crediting the Direct Billing Department's PTAO (using either a GM Revenue or GM Recovery expenditure type).
 
 
 
5.
Provides detailed information to the requesting department.
 
 
Requesting Department
6.
Reviews cost transfer data and immediately notifies Direct Billing Department of any error. ERRORS SHOULD BE REPORTED IMMEDIATELY.
 
 
Direct Billing Department
7.
Corrects any errors reported prior to submission for processing. If this is not possible, an adjustment entry should be made during the next billing cycle.
 
 
 
8.
Complete the following steps if the isp determines that a PTAO value is not valid: (Note: ispís should validate all PTAO values provided by customers against either the Integrated System PTAO Card Generator or the Operational Data Store Discoverer report entitled†"IS.FM_Active & Inactive Project-Task-Award Combinations". These are the only real-time sources of valid PTAO information that are accessible from outside the Oracle applications).
     
 
9.
Request valid PTAO information from the customer at point of service, or by phone. If by phone, the customer must respond by the end of that business day with a valid PTAO combination.
     
 
10.

If the new PTAO value is valid, isp performs normal billing function. (Go to Step 4)

     
 
11.
If the PTAO value is still invalid, or customer fails to respond, the isp is authorized to bill the organization's OTPS Suspense PTAO combination. This information is available as a spreadsheet called Organization Document on the Integrated System Document Repository.
(Go to Step 4)
     
Requesting Department
12.

Review and correct transactions charged to suspense PTAO's. (Refer to the Discoverer "OTPS Suspense Project Balance Report")

     

 

End of Activity

 


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