Customer refunds must be deposited in the proper fund to match up
with the related expenditure. The refund should be deposited at the
Business Office and receipted as an expenditure reduction. To do this
the department must determine what expenditure TCC was used to code
the original expenditure. For example, if supplies were purchased
using TCC 481, the refund should be deposited to the same fund using
TCC 481.
In some cases the original expenditure was made from a state appropriated
fund. It will not work to deposit the refund to a state appropriated
crediting/reducing the original expenditure. To process such a refund,
the original expenditure must be redistributed to a departmental local
fund. This should be done in the Accounting Office by a journal entry
to the general ledger. Once the original expenditure is redistributed
to a local fund, the refund can be deposited to the same local fund
to match the expenditure.
