Dealing with University Income
Departments within the University receive income from various sources. These pages provide information to help University staff understand the basic principles behind dealing with income, and to help them identify when payments to the University aren't classed as income and how to manage these exceptions.
Accounting for Income
- cost centre accounts record EXPENDITURE against core departmental budget
- non-research project accounts record the INCOME generated AND the EXPENDITURE incurred for each specific activity
There are a range of project accounts which enable reporting on the different sources of income to the University and the types of activity undertaken. Non-research project accounts ensure that the University can meet its legal obligations to HEFCE to report correctly on its income and expenditure and have accurate data to underpin funding and budgeting decisions.
Payment from our customers can be made to the University by raising a formal sales invoice or by purchasing goods or services through the On-line Store. The University can clearly identify the VAT status of income through either a sales invoice or the On-line Store. The Income Office will quickly initiate procedures to ensure that any outstanding debt to the University is recovered from unpaid sales invoices.
There are a VERY limited number of circumstances when it is possible to credit a payment to the University to a cost centre and guidance is outlined in the section on When is a payment to the University NOT classed as income?
If you are in any doubt about whether income is subject to VAT or which VAT code to use contact the Tax for advice and guidance.
When is a Payment to the University Classed as Income?
Payment from our customers can be made to the University by raising a formal sales invoice or by purchasing goods or services through the On-line Store. Payment received from a customer paying a sales invoice or through the On-line Store is classed as income.
Income to the University can also be received in departments in the form of cash, cheques or debit/credit card payments, all of which need paying-in to the University. Staff handling income to the University are responsible for ensuring that cash and cheques are paid into the Cash Office for presentation to the University bank for clearing as soon as possible after receipt. University income should NOT be held in departments for lengthy periods of time.
More detailed information is available on how to handle income for:
- providing services to students
- services rendered:
- contributions to University expenses from external organisations
Need Help or More Information?
Who to Contact
If you are in any doubt about whether income is subject to VAT or which VAT code to use contact the Tax section for advice and guidance before completing your documentation or visiting the cash office.
Contact the Income Office for advice and guidance on paying in income, petty cash and cash advances.
For guidance on handling your income, setting up new project accounts and raising Sales Invoices contact the Finance Manager for your Academic Department or Professional Services Department or the Research Finance.