Internal Billing (Recharge)
Internal billings (recharges or rebillings) result from one U-M department charging for goods or services provided to another U-M department.
Recharge Rates
An internal billing (recharge) rate must be established to bill for these services. All recharge rates must have approval from the Office of Financial Analysis. The service unit's billing rate typically includes cost allocations such as technicians to maintain testing equipment, office staff to administer billing and timekeeping, supplies consumed and the cost of equipment maintenance contracts, among other charges. Refer to the Office of Financial Analysis website for more information. Units that recharge typically operate in the Internal Services Fund (52000).
Service Unit Billing (SUB)
Service Unit Billing (SUB) is the method used for internal billing and provide more information regarding charges than a journal entry (JE). The SUB is loaded directly into the system by the user, enabling them to be in charge of the timing of the receipt of their revenue. When the SUB is loaded, all valid lines will go into the system and the error lines will be pulled out in an error report, whereas when loading a JE with errors, the entire JE is held up until all errors are corrected.
If you need access to load SUBs or training, please contact the Auxiliary Fund in Financial Operations at auxiliary.fund.staff@umich.edu or 647-3779.
Establishing a Recharge Vendor ID and Project/Grant
A vendor id is established and linked to the recharge Project/Grant (P/G) to identify where the revenue will be collected from billings through the service unit billing system.
A request to establish a recharge vendor ID is submitted to the Office of Financial Analysis, this request also includes information for requesting a recharge P/G and/or Shortcode. After the proposal is approved, Financial Operations will establish the recharge vendor ID, P/G and/or Shortcode. Financial Analysis then sends the entire packet with the P/G, Shortcode, vendor ID, recharge ID and rate approval letter to the requesting unit.