Revenue Accounting

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Policy Number:
UW-3029
Old Policy Number:
402
Responsible Office:
Accounting Services, Division of Business Services

University Policy

Definitions:
External customer
A customer from other state agencies and the general public who is not from UW–Madison or any UW institution.
General Purpose Revenue (GPR) Earned 
Revenue received by a state agency related to GPR appropriations in the course of accomplishing program objectives and for which no program revenue appropriation is made.
Gift
An amount received that meets all of the following criteria:
  • Provides support for broadly defined activities such as professorships, scholarships, fellowships, traineeships, research and instructional programs. The donor may restrict the use of the funds to a specific program area or purpose.
  • No detailed fiscal or technical reports are required, either periodic or final. However, the principal investigator may provide the donor with a brief summary of the supported activities and a statement that expenditures were made in accord with the intent of the gift.
  • Rights to any patents or copyrights are not claimed by the donor.
  • No provisions, such as delays or advance notice, are imposed by the donor concerning publication or dissemination of data and information derived from the activity.
  • The funding is voluntary and irrevocable by the donor.

Gifts are not: Fees for laboratory and other services, revenues from ticket sales, registration fees, payments for facility use, or payments on contractual or business arrangements.

Grant, contract, or agreement
A legally binding instrument between the Board of Regents of the University of Wisconsin System and a Non-Federal or Federal sponsor that provides support for extramural research, instruction, or other institutional activities. A typical grant, contract or agreement has a defined scope of work and budget, requires a project progress report, fiscal monitoring of receipts and expenditures and a financial expenditure report. The grant, contract or agreement will be subject to audit by the sponsoring agency or their designees.
Internal customer
A customer from UW–Madison and any UW System institution.
Refund of expenditures
An amount received as a rebate or refund from a vendor or payee for a price adjustment, overpayment, returned merchandise or duplicate payment. The amount relates to a previously recorded expenditure on a certain appropriation in the same fiscal year. In general, this amount is not anticipated during budget development. The refund should reduce the department’s expenditures.
Revenue
An amount received from the sale of goods or services, registration fees, investment income, royalties, fines, or rental of property or space.
Scope:

Applies to deans, directors, and staff dealing with revenue.

Policy:

Policy Statement

Per state statutes, (Chap. 20.906 Wis. Stats.), payments/receipts are to be deposited within five business days.

  • All receipts generated as a result of the sale of UW–Madison goods or services belong to the University, and must be recorded in the university's Shared Financial System (SFS). These receipts must be deposited directly into a UW–Madison deposit account by using:
    • Deposit tickets provided by Cash Management.
    • The Check Deposit Form.
    • On-site electronic deposit (check scanning).
  • Receipts may not be deposited in an individual’s private bank account.
  • Receipts may not be deposited into the university’s petty cash accounts, replenishable checking accounts, or used to make direct purchases of supplies, equipment, or services.
  • Checks issued by UW–Madison (with a UW–Madison logo and the address of 21 N. Park Street, Suite 5301 on the front) may not be deposited. Mark these checks “void” and send them back to Accounting Services File Room, 21 N. Park Street, Suite 5301, Madison, WI 53715.

  1. Policy for Cash Receipts

    Receipts are to be deposited to the same funding source from which expenses are paid. Receipts from the sale of goods or services to an internal customer are recorded as an internal sales credit. For department program revenue funded, use revenue codes. For department GPR funded, record the receipt as an external sales credit. Check receipts are deposited by using the Check Deposit Form. Cash receipts are deposited using the Cash Only Deposit Form. For sites using deposit slips, use the deposit slips issued by Cash Management along with plastic bank bags. To order deposit slips, use the Bank Deposit Slip form. To order plastic bank bags, use the Plastic Bank Bag Order Form.

  2. Exceptions to the General Rule

    1. GPR funds – Fund 101, etc.
    2. Auxiliary enterprises – Fund 128, Program 8
    3. Trust funds 161 and 162
    4. Refund of expenditures

    1. GPR Funds (Fund 101, etc.)

      The State of Wisconsin does not permit the recording of receipts on GPR funds. Record all revenue from sales as sales credit to the appropriate sales credit account code. See the complete list of GPR funds.

    2. Auxiliary Enterprises – (Fund 128, Program 8)

      Sales and services of a Program 8 auxiliary enterprise should be recorded as receipts, regardless of the source of the revenue. Use the general rule for recording all other fund 128 programs.

    3. Trust Funds 161 and 162

      Trust fund receipts should be recorded as receipts to fund 161 or 162 only by UW System Trust Funds Office staff. Send checks to University of Wisconsin System Trust Funds, 780 Regent Street, Madison, WI 53715; ATTN Trust Funds.

    4. Refund of Expenditures

      Refund of Expenditures should be recorded as negative expenditures to the funding source and account code for the original expenditure to which the transaction relates. For deposits relating to prior year fund 101 expenditures, use the following funding string: Fund 131, Project 131A006, program code R, account code 9209. Prior year credits shall be handled according to Check Deposit Form and Instructions or Cash Only Deposit Form and Instructions.

    5. Appendix – Prior Year Check Deposits

      CODING FOR PRIOR YEAR CHECK DEPOSITS
      Fund Number Coding for Credit
      101, 102, 103, 104 account code 2 Refund of expenditure coded to: Fund 131, Project 131A006, Program Code R, Account Code 9209
      104, non-account code 2 Refund of expenditure coded to: Fund 132, Project 132A006, Account Code 9209
      105, 106, 107, 108, 109, 116, 117, 118, 119, 174, 175, 176, 178, 301, 402, 403, 406, 501, 601 Refund of expenditure coded to: Fund 100, Dept 980100, Account Code 9209
      114 Refund of expenditure coded to: Fund 122, Project 122A006, Account code 9209
      177 Refund of expenditure coded to: Fund 186, Project 186A006, Account code 9209
      126, 166, 167, 168, 185, 325, 528 Deposit to the original fund using revenue account code 9209
      110, 111, 112, 113, 120, 121, 123, 124, 125, 127, 128, 129, 129, 130-138, 135, 142-152, 161, 163, 182, 183, 184, 187, 188, 336, 350, 530, 533, 620 Refund of expenditures coded to the same funding string as the original expense

       

      Note: Prior year vendor refund checks against purchase orders still open in the current fiscal year will be coded to the current funding with the exception of GPO pool funds (determined by voucher date)

      CREDIT MEMOS ONLY

      Prior year credit memos against closed purchase orders will be coded to the original funding source.

      Prior year credit memos against open purchase orders will be coded to the current funding.

  3. Departmental Deposits – FAQ

    1. How can I set up a deposit procedure for our department?
      • If your department collects large sums of money and/or frequently collects money, please check with your division/dean's office to request your own deposit tickets and sealable plastic bank bags.
      • We recommend departments make deposits daily or at least weekly in order to follow state statute and to avoid theft or loss.
      • To order bank deposit tickets, follow the instructions and submit the Bank Deposit Slip Order Form to Cash Management.
      • To order plastic bank bags, follow the instructions and submit the Plastic Bank Bag Order Form to Cash Management.
      • For departments that infrequently collect money, use the Check Deposit Form for depositing checks. For cash deposits, use the Cash Only Deposit Form.
      • Remember, per state statute, it is required to make deposits at least once a week.
    2. I’m not sure what fund, Dept ID, account code, or program code to use.
    3. How can I verify that the bank received my deposit?
      • Log into WISER and review your department's financial activity to verify the deposit has been recorded and is posted to the correct funding string.
      • Cash Management posts to WISER within three business days after the deposit is received by the bank.
      • If your deposit has not been posted in five business days after receipt by the bank, contact Cash Management and provide your name, email, department ID, deposit ticket number, the amount, and the estimated date of the deposit.
    4. How do I handle return items?
      • Cash Management forwards return items to departments using the fund string the original deposit was coded to.
      • Per UW System Administration regulations, a $20 fee should be assessed for checks not paid by the bank on which it is drawn.
      • Deposit this fee into 136-980100-R-9200. As a department, you reserve the right to refuse checks from customers/students with a history of returned checks.
    5. Can department deposits be sent through campus mail?
      • Only the Check Deposit Form with checks can be sent by campus mail. For additional safety, we recommend either hand delivering the checks to Cash Management at 21N Park St, Suite 5301, or mailing them by U.S. Mail.
      • Cash deposits are required to be deposited directly at US Bank unless your department is using an Armored Car Courier who transports the cash to US Bank.
      • If your department collects large sums of money and/or frequently collects money, check with your division's/dean's office to request your own deposit tickets and sealable plastic bank bags
      • By using deposit tickets and sealable plastic bank bags, these deposits can be dropped off at the bank or an armored car pick-up location on campus. See the Bank Deposit Slip Order Form for instructions on ordering bank deposit tickets. See the Plastic Bank Bag Order Form for ordering sealable plastic bank bags.
    6. Can I still drop off my deposit at 21 N. Park Street?
      • Only the Check Deposit Form with checks can be dropped off at 21 N Park Street, Suite 5301.
      • If you have your own deposit slips with sealable, plastic bank bags, then these deposits can be dropped off at the Bursar's Office at 333 East Campus Mall, Suite 10501, or on the first floor of 333 East Campus Mall using the overnight bank vault on the first floor by the elevators or at any U.S. Bank branch office
      • To find other armored car drop-off locations on campus, contact Cash Management. Indicate by email who you are, your email, where you are located, and that you are requesting an alternative armored car drop-off site other than 333 East Campus Mall.
    7. If our deposit drop-off point on campus is no longer convenient, what other sites are available for drop off?
      • Contact Cash Management by email, and indicate who you are, your email, where you are located, and your request for an alternative armored car drop-off site other than 333 East Campus Mall.
    8. How do we change our current deposit drop-off location?
      • Contact Cash Management by email, and indicate who you are, your email, and where you are located.
    9. What information needs to be recorded on the outside of the bank bag?
      • Provide the following information on the outside of bank bags:
        • Your department’s full name, the name of a contact person, phone number, email, and Dept ID (6-digit code). See the Plastic Bank Bag Order Form and submit it to Cash Management.
    10. When we drop off bank bags at a drop-off site, how do we get our bank bags back?
      • Plastic bank bags will not be returned by U.S. Bank or by armored car services. Keep a copy of your deposit ticket and verify all deposits in WISER. All deposits are posted to WISER within five business days after deposits have been delivered to the bank.
    11. How do we get copies of our deposit tickets back?
      • Deposit tickets are no longer returned by the bank.
      • Keep a copy of your deposit ticket and verify the amount of the deposit was received by looking it up on WISER.
      • The description field on WISER will say DEPOSIT followed by the full deposit number.
      • The journal date field will show the date the bank received the funds.
      • Verify deposits have been received by the bank by looking them up in WISER within five business days after deposits have been delivered to the bank.
      • If this amount does not match your deposit ticket, contact Cash Management. Indicate your name, department, funding, deposit slip number, the date of the deposit, and the deposit amount. Cash Management will look up the deposit online using Single Point (U.S. Bank’s website application). Cash Management will send you a copy of the deposit so you can determine why there is a discrepancy.
    12. How would I deposit checks?
      • If you have your own deposit slips with sealable, plastic bank bags, use your deposit slip and plastic bank bag to deposit your checks.
      • Otherwise use the Check Deposit Form and attach checks. Deliver or send the packet to Cash Management at 21 N Park Street, Suite 5301.
    13. How would I deposit cash?
      • If you have your own deposit slips with sealable, plastic bank bags, use your deposit slip and plastic bank bag to deposit your cash.
      • Otherwise, use the Cash Only Deposit Form. Cash deposits are required to be deposited directly at US Bank unless your department is using an Armored Car Courier which transports cash to US Bank.
    14. How would I deposit a refund of expenditure (vendor refund)?
      • If the refund is a check, use Check Deposit Form and attach checks. Deliver or send the form and attached check to Cash Management at 21 N Park Street, Suite 5301.
      • If the refund is cash, deposit the cash at US Bank with a generic deposit ticket and submit a Cash Only Deposit Form to Cash Management.
    15. How would I change a deposit ticket/ credit card funding string?
      • If you want to change the funding string of your deposit ticket or credit card, send an email to Cash Management at Cashmgt@bussvc.wisc.edu. In the email text, provide your deposit ticket number or credit card merchant ID, your old funding string, and new funding string. Once we receive your email, we will update our database, your funding string will be changed to the new one on that day or the following day based on what time we receive your email. It's not necessary to order new deposit tickets. When you re-order your deposit ticket, the new funding string will be put on that deposit ticket.

  4. Sales Tax Collections

    Sales tax must be collected on all taxable items. The website on revenue-producing activities covers policies regarding sales tax as well as Wisconsin Department of Revenue Publication 204.

    University departments are responsible for the collection and deposit of sales tax. University departments are liable for penalties assessed for failure to report and collect sales tax. When depositing checks, use the Check Deposit Form to help identify and collect sales tax. When depositing cash, use the Cash Only Deposit Form to help identify and collect sales tax. When deposits are made electronically by credit cards or wire/ACH, use the Receipt/Sales Credit Transfer Form to identify and collect sales tax. When deposits are made using deposit tickets, check scanning equipment, or using Cash Management as a customer invoice collection site, use the Receipt/Sales Credit Transfer Form to identify and collect sales tax. Based on what departments identify and collect for sales tax, Cash Management reports, processes, and submits a monthly collection of sales tax to the Department of Revenue.

    Remember when reporting taxable receipts, report gross receipts on the check deposit form, cash deposit form, or receipt/sales credit transfer form, and identify the appropriate taxable county code.

  5. Accounts Receivable Invoices

    For procedures related to accounts receivable invoicing, see Accounts Receivable Invoices. UW System Administration policies can be found at UW System Administrative Policy SYS 326, Collections and Write-Offs.

    Any department providing goods or services not yet paid for must issue an invoice to its customers and develop an accounts receivable system for billing and tracking customer payments.

    An accounts receivable system must be operated on a consistent basis and bill monthly in order to ensure recovery of receivables. Regular invoicing requires pre-numbered invoices issued in chronological number order. Invoices are issued in chronological order in order to reduce the likelihood of lost charges from nonpayment of services performed. Copies of all invoices must be maintained for six years plus the current year in chronological number order along with supporting documents for record retention purposes, audit trails, and follow-up inquiries. Effective maintenance of an accounts receivable system requires consistent, timely follow-up on unpaid invoices.

    Any invoices not collected within 30 days are considered past due. Once an invoice is past due, follow accounts receivable collection procedures.

    For those departments that do not use their dean’s/divisional office for central collections and do not have adequate separation of duties, contact Cash Management for discussions on the options listed below. Send an email to cashmgt@bussvc.wisc.edu.

    • Option One:
    • Option Two:
      • Develop separation of duties either internally within your department or using your dean’s/divisional office to help locate a separate collection point within your school/division.
    • Option Three:
      • Use Cash Management as a collection point for your customers. See instructions for Accounts Receivable Invoices. To use this option, invoice design must be approved by Cash Management before use. Customers must send their money directly to Cash Management or wire funds to our main deposit account.

    All accounts receivable invoice forms sent to Cash Management for deposit must meet the invoice numbering and financial coding standards in order for Cash Management to identify receipts. Work with Cash Management for review and approval before using Cash Management as a customer payment location.

    Note: Check with your dean’s/divisional office and department to receive information on internal policies and procedures related to revenue collections.

  6. Bank Deposit Slip

    Deposits can be made at armored car drop-off sites or directly at U.S. Bank. Bank deposit slips are ordered through U.S. Bank and are pre-printed with the bank routing and deposit bank account number. There are a special set of numbers on the bottom of these bank deposit slips which Cash Management staff uses to identify individual deposits on the daily bank statement. Provide Cash Management with one string of funding code which will be used for your department to collect all revenue related to this set of deposit tickets.

  7. Plastic Bank Bags

    On the plastic bags, print or attach a label with only the following information:

    • Department six-digit ID number
    • Full name of your department
    • Contact name
    • Phone number

    Note: On the plastic bag, do not write the deposit amount or the bank account number.

    Write the bag number on your deposit ticket. Send the original (white) to the bank with your deposit and keep all others for your records. Tear off the stub that has pre-printed bag number information. Keep this stub and indicate the date of the deposit, amount, and the last four digits of the bank account number (if known).

    When dropping off your deposit bag at the pick-up location, write the bag number on the armored car service log sheet along with the other information the log is requesting. Each drop-off site may have its own procedures in place for filling out the log.

  8. Receipt/Sales Credit Transfer Forms

    If a department needs to record sales tax for receipts deposited and/or for receipts being transferred to different department funding, use the Receipt/Sales Credit Transfer Form to distribute these funds along with accurately reporting and collecting sales tax.

    Table 1. APPENDIX TAX RATE:
    Codes and tax rates are shown only for those counties that require more than the standard 5% rate.
    County Name Code Tax rate County Name Code Tax rate
    Adams 1 5.5 Marathon 37 5.5
    Ashland 2 5.5 Marinette 38 5.5
    Barron 3 5.5 Marquette 39 5.5
    Bayfield 4 5.5 Menominee    
    Brown 5 5.5 Milwaukee 40 5.6
    Buffalo 6 5.5 Monroe 41 5.5
    Burnett 7 5.5 Oconto 42 5.5
    Calumet     Oneida 43 5.5
    Chippewa 9 5.5 Outagamie    
    Clark     Ozaukee 45 5.6
    Columbia 11 5.5 Pepin 46 5.5
    Crawford 12 5.5 Pierce 47 5.5
    Dane 13 5.5 Polk 48 5.5
    Dodge 14 5.5 Portage 49 5.5
    Door 15 5.5 Price 50 5.5
    Douglas 16 5.5 Racine 51 5.1
    Dunn 17 5.5 Richland 52 5.5
    Eau Claire 18 5.5 Rock 53 5.5
    Florence 19 5.5 Rusk 54 5.5
    Fond du Lac     Saint Croix 55 5.5
    Forest 21 5.5 Sauk 56 5.5
    Grant 22 5.5 Sawyer 57 5.5
    Green 23 5.5 Shawano 58 5.5
    Green Lake 24 5.5 Sheboygan    
    Iowa 25 5.5 Taylor 60 5.5
    Iron 26 5.5 Trempealeau 61 5.5
    Jackson 27 5.5 Vernon 62 5.5
    Jefferson 28 5.5 Vilas 63 5.5
    Juneau 29 5.5 Walworth 64 5.5
    Kenosha 30 5.5 Washburn 65 5.5
    Kewaunee     Washington 66 5.6
    La Crosse 32 5.5 Waukesha 67 5.1
    Lafayette 33 5.5 Waupaca 68 5.5
    Langlade 34 5.5 Waushara 69 5.5
    Lincoln 35 5.5 Winnebago    
    Manitowoc     Wood 71 5.5

  9. Check and Cash Deposits

    To deposit checks, use the Check Deposit Form and attach checks. Deliver or send the packet to Cash Management at 21 N Park Street, Suite 5301.

    Never send deposits through campus mail. Use the following steps:

    1. Complete the Check Deposit Form.
    2. Attach checks and the adding machine tape showing the detail and total. All checks are to be endorsed by the depositing department using the following language, “For Deposit Only to U.S. Bank Account 0226.”
    3. For foreign checks, complete a separate Check Deposit Form for each foreign check and send it to Cash Management.
    4. Note: Foreign checks require special handling by the bank. These deposits may take up to 15 business days to show up in WISER under department funding provided on submitted forms.

    To deposit cash, use the Cash Only Deposit Form and deposit the cash at US Bank.

  10. On-Site Electronic Deposit of Checks

    UW–Madison departments may choose to deposit checks by using on-site electronic deposit. Departments that choose to utilize on-site electronic deposit are required to:

    • Obtain prior authorization from Cash Management to implement on-site electronic deposit. Contact Cashmgt@bussvc.wisc.edu
    • Provide a secure workstation with access to the U.S. Bank SinglePoint website.

    Implementation of the check scanning equipment, computer application, and internet connection must be approved by the department or division/dean’s office. An implementation schedule will be reviewed and approved through Cash Management with input from the Office of Cybersecurity.

    To obtain and/or update U.S. Bank SinglePoint access for on-site electronic deposit of checks, complete the Bank Account Website Access (SinglePoint) form, which includes the check scanning set-up form.

    Security Requirements

    Workstations with attached electronic check scanners must follow these requirements:

    • Have a dedicated workstation that is maintained by the Division of Information Technology (DoIT).
      • This workstation's physical equipment is only allowed to access URLs associated with the electronic check scanning process and is not allowed to access any other applications, including email, additional web browsers, etc.
      • Printers must be directly connected to this workstation.
    • Have a managed workstation installed and maintained according to specifications outlined in the Office of Cybersecurity baseline information systems security standard.
    • All workstations with access to on-site electronic deposit should be located in a physically secured and monitored location. For example, the workstation should be in an office suite that is locked after normal business hours. The workstation should not be in a public area, or in an unoccupied office area (such as a vacant cubicle).
    • Persons or workstations with access to on-site electronic deposit should be limited to only those workstations and users with a documented legitimate business need.
    • Persons or workstations with access to on-site electronic deposit should be limited to only those users who have completed a background check.
    • Restricted to workstations with appropriately assigned university IP addresses.
    • Client authorization and access will be managed by Cash Management through the SinglePoint Portal.
    • All checks, both scanned and ready to scan, must be stored in a locked room or file cabinet; access to the storage area(s) must be limited to authorized personnel only.
    • All scanned checks must be destroyed (cross-cut shred) within 30 days after the deposit date.

    Business Process Requirements

    • Users with access to SinglePoint shall have a separation of duties between those who scan checks and those who approve the deposit batches for processing.
    • Users shall fulfill operator training requirements, as prescribed by Cash Management.
    • In the event of staff changes, the department shall contact Cash Management to change SinglePoint access.

  11. Incoming Wire Form

    This form is used when your department is expecting either an Incoming International Wire/ACH or an Incoming Domestic Wire/ACH.

    When your customer is asking to make payments by wire/ACH, instruct them to include your Department ID and Invoice number in the wire/ACH reference/memo field. See Wire – Incoming Department Wire/ACH Form for procedures on notifying Cash Management and requesting bank information. Use the memo field at the bottom of the form to request bank information.

  12. Refunds of Receipts/Sales Credits

    Refunds of receipts/sales credits can be completed in ShopUW+.

  13. Correction of Revenue Coding Errors

    To correct the coding on a prior deposit, use the Receipt/Sales Credit Transfer Form and email to Cash Management at cashmgt@bussvc.wisc.edu.

  14. Credit Card Request for Visa/Mastercard/Discover Card/American Express

    See Becoming a Credit Card Merchant

Procedure:

Procedure

Many departments have receipts and refunds because of the sale of goods and services, gifts, and grants. Cash receipts from a large variety of sources and for a wide range of purposes require that departments use proper accounting procedures. This chapter focuses on accounting procedures for cash receipts. Refer to the policy on revenue producing activities which includes instructions regarding revenue from non-University sponsored activities.

Please note:

  • Request payments to be submitted in US dollars.
  • Check with your Dean’s/Divisional Office and Department to receive information on internal policies and procedures related to revenue collections.
  • If your customer is asking to make payments by Wire/ACH, instruct them to include your Department ID and reference number in the Wire/ACH reference/memo field. See Wire – Incoming Department Wire/ACH Form for procedures on notifying Cash Management.
  • All deposits using account code 9050, 9051, 9060, 9061, and 9062 require a program code being either 0,1,2,3,4,6,8,9,F and cannot be a program code R.
  • All revenue deposits involving Funds 133, 144, or 182 which do not use account code 9050, 9051, 9060, 9061, and 9062, please submit to Research and Sponsored Programs at 21 N. Park St., Suite 6401, Madison, WI 53715.
  • All revenue deposits involving Funds 233 which do not use account code 9050, 9051, 9060, 9061, and 9062, please submit to Accounting Services at 21 N. Park St., Suite 5301, Madison, WI 53715.
  • All deposits involving Fund 161 require detail backup and must be submitted directly to University of Wisconsin System Trust Funds, 780 Regent Street, Madison, WI 53715Save Record; ATTN Trust Funds.
Related UW-Madison Policies:
Related UW–Madison Documents, Web Pages, or Other Resources:
External References:

Policy Administration

Approval Authority:
Assistant Vice Chancellor of Business Services and Controller
Policy Manager:
Finance Associate Director
Contact:
Cash Management -- Cash Management, Cashmgt@bussvc.wisc.edu, (608) 263-7461
Effective Date:
07-10-2014
Revised Dates:

07-10-2014, 06-27-2023, 03-18-2025

Retrieved:
03-23-2025 07:32:17