Before you enter into any income generating activities |
See Web Page |
Departments should development their own external trading procedures |
How to use these pages |
There are 8 aspects to consider before entering into new income generating activities and you may need to refer to Credit Control and the Tax Teams. |
Departmental responsibilities and Financial Regulations |
Sales to employees at below cost (or free) need to be recorded and reported as a taxable benefit on the P11D. |
Sales to employees and members of the University |
Non-University commercial activity should not be carried out on University premises and facilities unless the Director of Finance has been consulted. |
Exceptions |
Before individual sales are made |
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Be aware of the credit risks of particular types of supplies:
- Course and conference fees
- Facilities hire
- Foreign trade
- Salary recharges
- Sponsorship and student support
- Overheads and administration charges
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Credit risks of particular activities |
Formal written agreements should be in place before you recharge salaries to external and associated bodies |
Salary re-charges |
Tax codes to use when dealing with Cambridge Society, CUP, UCLES and Cambridge Enterprise |
'Internal' or 'External' |
Credit checks must be obtained from the Credit Control (Research Accounting) Team for new customers and those with whom you anticipated that your annual trade will be >£1000 |
Credit worthiness of external customers |
Five questions to ask to help determine correct VAT treatment |
Determining the correct VAT treatment |
University's Standard Terms & Conditions (STC) that need to be made available to customers in advance for sales >£500 |
Terms and conditions and Appendix B2 |
The STC may not apply unless the customer accepts a valid quote from ourselves or we accept their order in writing |
Terms and conditions |
Cannot receive cash in excess of £9,000 (15,000 Euros) |
Appropriate payment methods |
For sales over £10,000 consider requesting a bank guarantee |
Appropriate payment methods |
A new template is available for quotes |
Quotations and Appendix C |
Recording Sales |
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Invoices must be raised within a month of the sale on UFS |
Raising sales invoices |
Invoices should always be coded to GAAA source of funds and a K or L transaction code |
Account codes |
Departments should develop an internal policy for refunds |
Customer refunds |
Debt Management |
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Debt management is the responsibility of the Department |
Departmental responsibilities and Financial Regulations |
If a Department wishes to write off a debt then they must contact Credit Control |
Writing off bad debts |
Details must be maintained of all debt recovery actions |
Keeping records of recovery attempts |
It may be possible to charge interest on overdue accounts |
Interest |