Overview

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• This article will describe when and how campus units will record Departmental Support Differential Income

Critical Concepts

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• Differential Income Rate is the overhead cost recovery rate applied to sales of goods or services to non-University individuals or entities only
• Use OFC Fund 12200 Recharge Ext Sales Diff Income to accumulate and separate the additional overhead rate for campus administration from Operating Funds
• Not all Recharge Operations will have a Differential Income Fund
• Track Differential Income via Tasks in Projects created for Recharge Operations, refer to KBA How to Set Up a Recharge Operation in PPM
• Refer to your Vice Chancellor for rate and requirements as the rate can vary per operation
• The department’s Financial Manager is responsible for submitting the Departmental Support Differential Income entries to General Accounting for processing upon receipt of Revenues, preferably on a monthly basis
  
  • Exception is for departments in VCHS, where VCHS will centrally process the Departmental Differential Income and departments do not need to submit for their Recharge Operations
• The Differential Income must be posted in the same Fiscal Year that the Income is received
• For more information, refer to Blink Overhead Cost Recovery - Differential Income
• Effective Fiscal Year 2020/21, Campus will assess Sales and Service Activities (SSAs) Central Administration's portion of Differential Income
• Central Administration portion of Differential Income is currently only posting in General Ledger
• Departmental Support portion of Differential Income is posting in PPM via MCI file upload, that then automatically flows into General Ledger
• Each Vice Chancellor area may also require a minimum Differential Income portion to be remitted, consult your Vice Chancellor’s office for more information

Application

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• There are several SSAs that require recording of Differential Income
• Use the same process in the steps below for the following Funds, replacing the Recharge Operating Fund with the appropriate Fund that has Differential Income
• Examples of Funds that have Differential Income include:

OFC Fund Number	OFC Fund Name
12100	Recharge Operating Fund
12304	Misc Sale of Goods/Svcs Fund
12316	SOM-Housestaff/Resident Costs
15006	Lab Service Agreement

Steps to Take

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For Recharge Operations

1.  Download and complete an MCI File (Version date 04.08.2021)

a.  Use PPM Expenditure Type 774010 - Differential Income Transfer to Reserve to transfer between Recharge Operating Fund (OFC Fund 12100) to the Differential Income Fund, Recharge Ext Sales Diff Income (Fund 12200)

• • Debit the Operating Fund (Fund 12100) on the Recharge Project
  • Credit the Recharge Ext Sales Diff Income (Fund 12200)

Account 774010 - Differential Income Transfer to Reserve needs to be used to process the Debit and the Credit of the transfer to have a net impact on the Account as zero

b.  Enter the following parameters for the fields on the MCI file:

• • Transaction Source: UCSD Manual Import
  • Document:  Dept Support Differential Income
  • Document Entry:  Dept Support Diff Inc Transfer

2.  Create a ticket in Service and Support to transfer funds to Differential Income with the following parameters:

• About: Financial Accounting
• Related to: Oracle Project Portfolio Management
• More Specifically: MCI File Submissions
• Subject: Differential Income Transfer
• Description: Enter the Project Number

3.  Attach the completed MCI file to the ticket and Submit