This article displays how Recharge Operations should be set up in Project Portfolio Management (PPM) and complete transactions operating with the following Funds: OFC Fund 12100 - Recharge Operating Fund, OFC Fund 17001 - Equipment Renewal and Replacement, OFC Fund 12200 - Ext Sales Diff Income.
- A Recharge Operation is a Sales and Service Activity (SSA) that provides specific, ongoing, repetitive goods or services to campus units on a fee basis.
- An established SSA has a proposal, review, and approval process through Costing Policy & Analysis (CP&A).
- Recharge Operations will use OFC Fund 12100 Recharge Operating Fund and Recharges will be distinguished with a Project in PPM.
- Equipment Renewal and Replacement (R&R) Reserves and Differential Income Reserves for Recharge Operations should be set up in PPM as unique Tasks under the Recharge Operation Project.
- RMP Application (or APIs) are utilized to process Project Costs for Billings for the Recharge Operation
- There will be a shared Credit Expenditure Type for the cost recovery of the Billing and a unique Debit Expenditure Type for each authorized SSA.
- Each approved Recharge Operation (each approved proposal) will have a license number issues to them by Costing Policy & Analysis and may have multiple Recharge Project set up in PPM linked to the 12100 Recharge Operating Fund.
- Transactions for the Recharge Operation will be tracked by recharge license number, and designated expenditure type(s).
- The Project prefix should begin with REC.
- PPM may have Projects for Differential Income and Equipment Reserves.
- Operations are encouraged to have a minimal number of Projects to manage the Recharge Operation, striving for a single Project. Tasks are the preferred method for identifying specific subsets of the Recharge Operation.
Create Task(s) under the Recharge Project for the following reasons:
- To track various Financial Units and Services by the Recharge Operation
- For any associated Equipment Renewal & Replacement Reserves, if applicable
- For any associated Differential Income Reserves, if applicable
- For any associated Subsidy, if applicable
The RMP Application or API used to process Project Costs will also need to be used to transfer Funds from the Recharge Operating Funds to the Reserve Funds
A Cost Transfer cannot be processed between those types of Tasks because the costs have not already occurred.
- Each Recharge Operation (proposal) should have at least one unique Expenditure Type for the Debit, which is the Expense to the service receiver.
- Debit Expenditure Type Accounts will start with 770.
- Credit Expenditure Type Accounts will start with 775 and pairs with the Debit Accounts listed above respectively.
- Each Recharge Operation will be provided at least one Expenditure Type for billing purposes and some Projects may have more than one.
- No Recharge Operation should share their Expenditure Type with another Recharge Operation. Each must utilize their designated Expenditure Type.
Example: 1:1 Project: Bio fly kitchen (operation)
Expenditure Type: Bio fly kitchen
Example 1: Many Projects: Animal Care Program (operation)
Expenditure Type 1: Husbandry
Expenditure Type 2: Animal acquisition
Expenditure Type 3: Technical services
Project: REC (Recharge Operation Name)
Task 1: Recharge Operation Name (+ Fund)
Task 2: Recharge Operation Name (+ Equipment Renewal Replacement Fund)
Task 3: Recharge Operation Name (+ Differential Income Fund)
Task 4: Service Line 1 Name
Expenditure Type Name: Recharge Operation Name
The setup above allows for tracking and linking associated segments to the approved operation.