Overview
- This article will describe when and how campus units will record Departmental Support Differential Income
Critical Concepts
- 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
- 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
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