University Recharges – Principles

Recharging work performed by one department for another within the University (recharging works)

The recharge of works should be undertaken by the department who performed the work. Examples of work performed are:

  • Printing done by AVS
  • Catering provided by RACS
  • Repairs and Maintenance performed by Estates
  • Various clinical services provided by one MBSP department to another

This is not intended to be an exhaustive list, the principle is that where one department is providing a service to, or producing goods for, another department a recharge should take place.

In such instances the recharge should be processed through GL codes starting with an 8. This is true for both sides of the journal.

This may result in costs being charged to an 8 GL code where there is no budget. In this case a budget transfer should be requested if required. The costs should not be re-coded to a normal expense code.

As a subsidiary College Court is not a University department. It is for this reason that the costs associated with College Court come through on a normal expense code, rather than a GL code starting with an 8.

Recharging non-pay costs incurred by one department on behalf of another (recharging costs)

There are potentially 3 opportunities to ensure that costs are appropriately allocated to the correct department when buying goods and services from an external provider.

1 .Purchase order stage

When raising a purchase order if the split of the goods and services is known then the purchase order should be raised appropriately with the split reflected in the order.

This is particularly important for departments who are using smarter purchasing as once the purchase order is raised this will result in the invoice being automatically authorised.

2. Invoice

If when the invoice is received it is known that the costs should be split between 2 or more departments then the invoice should be coded accordingly. 

Under smarter purchasing this step is not available.

3. Recharge Journal

If stages 1 and 2 have not been utilised, or are not available then there is a third option. This is to raise a recharge journal.

This recharge should be undertaken by the department who has borne the full cost and is seeking to share the costs with 1 or more departments.

The recharge should be raised on the GL code where the costs were originally recorded. GL codes starting with an 8 should not be used for re-charging costs.

Recharging pay costs

If pay costs have been charged to the wrong department then payroll should be notified.

Payroll will then be able to amend the individual’s payroll record with the appropriate effective dates to ensure that costs are coded to the correct cost centre from when the next payroll is run. This includes any retrospective adjustments.

Any other amendments to pay costs should be performed by College / Divisional management accountants only and Financial Accounting ( should be informed in all cases.

Recharging income

Where external income has been allocated to a department and this allocation is incorrect then an adjustment journal should be raised.

This adjustment should be done on the same GL code in both departments, and this GL code should be the same code as where the income was originally coded.  These journals can only be processed by College/Divisional management accountants who are required to check with the Tax office first.

Transferring external income between cost centres and SIOs should not be done on a GL code starting with an 8.

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