The guide explains how to transfer money to a different UW-Madison department or a different UW institution.
If you are looking to billing another department for goods or services you have have provided, also called internal billing, please visit the Pay a different department web page.
Understanding accounting adjustments
Accounting adjustments—previously known as cost transfers—are modifications made to reclassify and transfer transaction spend for settled financial transactions. These are done done to move expenditures from one fund, department, project, account, amount, etc. to another to ensure the accuracy of the general ledger and data integrity.
Funding strings on transactions (invoices, payroll, etc.) should be reviewed before they are posted. However, there are circumstances in which it may be necessary to transfer expenditures and accounting adjustments are allowed. Some examples include:
- Correction of a clerical error
- Reallocation of expenses where multiple projects benefited
- Reallocation of shared resource costs
- Transfer of costs from divisional or discretionary funds to another
- Reallocation of a salary expense
This is an accordion element with a series of buttons that open and close related content panels.
Reasons to avoid using accounting adjustments
- Accounting adjustments represent a serious audit risk as federal auditors have made cost transfers a top priority. Funding strings on invoices, payroll, etc. should be reviewed before they are posted.
- Impact of incorrect adjustment:
- Audit risk
- Financial period
- Delay in award closeout
- Effort Reporting
- The burden of explaining discrepancies
When not to use an accounting adjustment
- Do not use to create an interdepartmental billing
- Do not use to manage your grant balances
- Do not use to transfer fringe only
- Exceptions may apply on sponsored projects that do not allow fringe – call your RSP accountant to determine if this exception applies to your grant (RSP Grant Accountant Search)
- Do not use to transfer prior year GPR
- Exceptions may apply; contact Accounting Services for exceptions (finaccounting@bussvc.wisc.edu).
- Do not use to transfer salary account codes – send to Accounting Services
- Do not use to do salary transfer between appt ID – send to Accounting Services
Types of accounting adjustments
This is an accordion element with a series of buttons that open and close related content panels.
Payroll and non-payroll accounting adjustments
All accounting adjustments (payroll and non-payroll) are handled within Workday.
Payroll Accounting Adjustment
Anything that goes through payroll, HRS.
- Once a Payroll Accounting Adjustment has all of the proper approvals, it will be routed to Accounting Services to be processed.
- Payroll Accounting Adjustment only involve salary funding strings (tuition and fringe will follow automatically).
Non-Salary
All other expenses, non-payroll.
Sponsored and non-sponsored adjustments
Sponsored
- Involves at least one sponsored project (for e.g. fund 133, 144, etc.)
- If this transfer occurs 90 days after the original charge posts, the 90 day justification will be required
- Requires PI approval for each sponsored project involved in transfer
- Requires RSP approval (allowability, effort)
- Sponsored requires Division approval for each sponsored project involved in transfer
Non-sponsored
- Only involves non-sponsored funds (for e.g. 101, 136, 150, etc.)
- Does not require PI approval
- Does not require RSP approval
- Regardless of when initial charge posted, it does not require 90 day justification
- Final approval is at the Divisional office
How to submit an accounting adjustment
Reference guidance on the Workday Financial Accounting web page to learn more about how to accomplish your desired goal.
