Accounting & Financial Reporting

Self-Supporting Activities - Federal Rebate

What is a federal rebate?

A federal rebate is a credit given to federal customers that have been recharged for Reserve For Improvement (RFI). RFI is rebated because it is an unallowable cost to federal customers.

How is the federal rebate determined?

General Accounting determines the federal rebate by dividing RFI by Total Costs.

Where can I find how much I've recharged federal customers?

Enter your unique object code into FIS Decision Support (DS) report Object Code Summary by SFGT (199). In the search results, the subfund group types pertaining to federal or federal flow-thru (FFT) are B, C, F, N, V, W, and X. You can add the amounts to determine the total recharges to federal customers. You can also click on a specific Type to view the accounts that were charged.

How is my federal rebate differentiated from another department's rebate?

General Accounting assigns a unique federal rebate object code to each activity. The object code usually has "F" or "FR" in it, and the description typically contains "Fed Reb" or "Federal Rebate".

How does the federal rebate appear on the ledger?

If you are the recharging department, the federal rebate appears in your operating account under Object Consolidation SUB9 - RECHARGE. If you are checking the ledger by object code, the rebate will appear as 3920 - INTERDEPARTMENTAL RECHARGE REBATE. The document type is GLJV - General Ledger Journal Voucher, the origination code is GA - General Accounting, and the document number begins with JLGN (e.g., JLGN03-12).

If you are the department receiving the rebate, the federal rebate appears in the account used to purchase the service, under Object Consolidation SUB3 - SUPPLIES AND EXPENSE. The document type is GLJV - General Ledger Journal Voucher, the origination code is GA - General Accounting, and the document number begins with JLGN (e.g., JLGN03-12). If your account has been used to purchase from several recharge departments, you will see multiple entries.

What happens if I move an expense that had a rebate credit?

If you move an expense that had a rebate credit, you will see an off-setting rebate debit in the same account and a rebate credit in the replacement account if it is also a federal contract or grant account. For example, let's say you have an original recharge expense of $28 with a $5 rebate credit in Federal account 3-1234567 but the correct account should have been 3-7654321. When you move the recharge expense to the replacement Federal account 3-7654321, the credit of $28 for the recharge expense in 3-1234567 will generate a debit rebate of $5 to cancel the prior rebate credit and the recharge expense of $28 in the replacement account 3-7654321 will generate a rebate credit of $5.

If the original recharge expense is moved from a federal account to a non-federal account, the credit to move the expense out of the original account will generate a debit rebate entry to cancel the original credit rebate but there will be no rebate entry in the new account; the new account will show the full charge of $28.

You should never move a rebate credit/debit; only the recharge charge/credit expense that generated it.

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