The Indirect Cost Adjustment (ICA) document is used to adjust the amount of indirect cost expense charged to a Contracts and Grants account and automatically adjust the associated amount of indirect cost revenue.
Every Contracts and Grants account in Kuali Financials has an associated Indirect Cost Recovery Account. When indirect cost is charged as an expense to a Contracts and Grants account, an equal amount of indirect cost revenue is generated in the corresponding Indirect Cost Recovery Account.
The ICA document is normally used to make small adjustments to align indirect costs with direct expenditures. This document might also be used to correct previous errors with the collection of indirect cost or to manually add indirect cost to an account when Kuali Financials method of calculating indirect cost recovery as a percentage of direct costs is not sufficient. There are no special permission restrictions for the ICA document.
Indirect Cost Adjustments route to the Fiscal Officer or Delegate assigned to the accounts used on the document and optionally route to Organization Review, Object Code Review, Sub-Fund and Contracts & Grants.
The Accounting lines tab has two sections unique to the Indirect Cost Adjustment document: Grant and Receipt. Note that the object codes are prefilled based on parameters GRANT_OBJECT_CODE and RECEIPT_OBJECT_CODE.
- Accounts used on the Grant section of the document must have an Indirect Cost Recovery Account associated with them.
- The Receipt section of the document is populated with the Indirect Cost Recovery Account associated with the account entered in the Grant section.
- Each Grant accounting line must have a corresponding Receipt accounting line.