In a Nutshell
- Indirect Cost Rates, Types and Accounts are associated with the grant account or a sub-account associated with the grant account.
- Indirect Cost Types identify which types of expenditures will be assessed indirect cost recovery. By default, all expenses that post to an account will be assessed ICR, unless, either the account or the object code is excluded using the Indirect Cost Recovery Exclusion by Type or Indirect Cost Recovery Exclusion by Account.
- Indirect Cost Rates identify the percentage to be assessed, the chart, account and sub-account, object codes and sub-object codes where the icr revenue and expense entries will post.
- ICR Expense: Wildcards can be used for the Chart, Account and Sub-Account and this means that all expenses will post to the same chart, account and sub-account as the original transaction using the object code/sub-object code associated with the Debit entries.
- ICR Revenue: Wildcards can be used for the Chart and Account. ICR Chart and Accounts are associated with the Account or Sub-Account used for the expenditure transaction. Sub-Accounts are not identified specically for ICR Revenue on the Account or Sub-Account and therefore transactions cannot be posted to wild card sub-accounts. In order to post revenue to a sub-account, a specific chart, account and sub-account must be identified. NOTE: a specific sub-account can be entered with a wild card account, but the revenue will only post to the account. We will be adding validation to require an account if a sub-account is entered in a future release.
- Indirect Cost Recovery Accounts identify where the ICR revenue should post when wildcards are used in the Credit section of the ICR Rate tabel. ICR Accounts can be added to Accounts or Sub-Accounts.
ICR Debit / Credit Entries
|Debit Entries||Chart||Account||Sub-Account||Object Code||Sub-Object Code|
|Wildcard @||Grant account/sub-account where expense incurred||ICR Rate table|
|No Wildcard||Chart, account, sub-account specified on the ICR Rate table||ICR Rate table|
|Wildcard #||ICR Account tied to the Grant Account or Sub Account||Not applicable||ICR Rate table|
|No Wildcard||Chart, account, sub-account specified on ICR Rate table||ICR Rate table|
ICR Types and Rates can be added to Accounts or Sub-Accounts. When expense transactions that are not excluded from ICR post to the Account or Sub-Account, ICR will be generated by the posterJob based on the Rate and Type associated with the Account or Sub-Account. The revenue will post to the ICR Account associated with the Account or Sub-Account and to the object code and sub-object code associated with the Indirect Cost Recovery Rate assigned to the Account or Sub-Account.
Account ICR Type and Rate
Sub-Account ICR Rate and Type
Indirect Cost Recovery Rate
Use the Indirect Cost Recovery Rate document to manage ICR rates. Rates are created for each fiscal year. Any active rates in the current year will be created in the next fiscal year when batch job Fiscal Year Maker is run.
Enter the Debit and Credit charts, accounts, sub-accounts, object codes and sub-object codes in the New ICR Rate Detail tab.
- Object Code and Sub Object Code: The object code and, if specified, the sub-object code where the indirect cost expenses will post. NOTE: Wild cards can be entered in the object code field, however, a valid object code should be entered in order to generate ICR expense entries. Additionally, there is a validation that if a wildcard is entered in sub-object code, the object code must also be a wildcard. Both issues will be addressed in a future release to require a valid object code and, if entered, sub-object code.
- Sub-Account Number: Leave blank if not using a specific sub-account and upon submit, the system will fill in with 5 dashes.
- Object Code and Sub-Object Code: The object code and, if entered, the sub-object code where Indirect Cost Recovery income will post. If the sub-object code is left blank, the system will fill in with 3 dashes after submit.
Use the Indirect Cost Recovery Rate Detail Lookup to see the accounting string assigned to each rate. This is only a lookup, to make changes to the Rates, use the Indirect Cost Recovery Rate lookup and maintenance documents.
Indirect Cost Recovery Type
Use the Indirect Cost Recovery Type to create ICR Types that can be assigned to Accounts and Sub-Accounts to specify which expenses should be charged ICR. It's assumed that all expenses will be charged ICR unless the object code is listed in the ICR Exclusion by Type tab.
Enter or lookup and return all object codes that should NOT be assessed ICR with this ICR Type Code.
Indirect Cost Recovery Exclusion by Type Lookup
Use the Indirect Cost Recovery Exclusion by Type Lookup to see the object codes excluded for each Type Code. This is only a lookup, to make add or remove excluded object codes, use the Indirect Cost Recovery Type lookup and maintenance documents.
Indirect Cost Recovery Exclusion by Account
Use the Indirect Cost Recovery Exclusion by Account to exclude specific accounts that would get picked up by the Indirect Cost Recovery Rate wildcards.