Sale of Products and Services
Sales of products or services to the general public are secondary and incidental to the primary functions of the University.
Written Approval Required
No service involving sales to the general public shall be inaugurated without prior written approval by the Provost or designee in academic areas and the vice chancellor of Administration in all other areas.
Establishing or Providing a Service
The service must satisfy one or more of the following conditions:
Method of Payment
Where possible, sales of University products and/or services should be made with payment in advance or at the time the service is provided. For sales paid by credit card or on account, see the applicable sections below.
Departments can accept payment by credit card through one of two means:
Billing and Accounts Receivable
Departments must use the PeopleSoft Accounts Receivable/Billing (ARBI) when making sales on credit unless they meet the following criteria:
For sales on credit, departments must establish polices/procedures, including follow-up on uncollected amounts and denial of credit where appropriate.
Except for entities that are exempt from sales tax, the University is responsible for charging and collecting sales tax (2:050). Departments are responsible for ensuring that they charge applicable sales tax on taxable sales to non-exempt entities.
Deposit cash from the sales of products and services with the Cashier, 15 Jesse Hall, on a timely basis. Prepare a Cash Receipts Report (2:060) using the appropriate PeopleSoft account code. Do not send cash through campus mail.
Sales to Other University Units
When another University unit purchases the products or services, they should use an Internal Service Order Form (UM48) or other applicable form/process. Because the University is exempt from sales tax, the price should not include sales tax. Most sales to other University units are recorded on an Internal Service Entry (2:190) or processed through a feeder system. For more information on ordering from campus departments, see 3:040.
Refunds should be made only in exceptional circumstances. The refund should be made via a non-PO voucher. The voucher should include the reason for the refund and should document the original sale.
Unrelated Business Income Tax
Some business operations are subject to unrelated business income tax. In these cases the unit is responsible for working with Division of Finance-Accounting to provide the necessary information for the tax return. The unit is responsible for all taxes due including any estimated payments.