Interagency Billings

Introduction

An interagency billing is used when an internal service (or other) fund provides goods or services to another fund within the state. Idaho Code 67-3516 describes the requirements for the interagency billing process. Also, see the Fiscal Policy Advisory Committee’s fiscal policy, Joint Venture Contracting, for information about joint purchasing between state agencies.

 

Much of the interagency billing process is automated when you use Due From and Due To transaction codes. The basic steps are:

  1. The billing agency enters the TC130 Due From Other Funds transactions. A Due From Other Funds is a receivable set up by an agency (the billing agency) for goods or services provided to another state entity.
  2. The billing agency then completes an IAB (Interagency Billing) PDF form and sends a copy of it to the paying agency.
  3. The paying agency completes section C of the form and keeps a copy, then enters a TC 240 transaction (or a TC 241 Due To Other Funds transaction) to pay the bill using information on the IAB form. A Due To Other Funds is a payable established for goods or services received by another state entity (the paying agency).
  4. STARS will automatically generate a TC 170 transaction for the billing agency.

The transaction codes that the billing agency and paying agency use will record the expenditure and the liquidation of the receivable. STARS uses several different files to track the process of revenues, expenditures, and the activity of Due To and Due From transactions. The important STARS files involved are the Document File and the Subsidiary File.

The individual documents on the Document File contain details of the interagency bill, including the agency billed. The Document File also keeps track whether the billed agency has made a payment. 

The Subsidiary file contains the billing agency and paying agency numbers and associated general ledger numbers.

Billing Agency - Create an Interagency Billing

  1. The billing agency uses a transaction code (TC) 130 in their STARS transaction
  2. The billing agency then completes an IAB (Interagency Billing) PDF form and sends a copy of it to the paying agency.
TC 130 - Record an Interagency Billing Due From other funds or appropriations

This TC is used by the billing agency to create the receivable. The billing agency must enter a Subsidiary Number (SUBSID), Second Agency (SEC AGENCY), and DOC-DATE. This transaction code requires approval level 3.

 

The example below indicates the minimum fiscal codes to post a TC 130 transaction using a Batch Type 2 for a PCA-driven agency. NOTE: STARS will automatically fill in the BFY and EFF-DATE.

 

VERSION 3.1      STARS--GENERAL PURPOSE TRANSACTION ENTRY               S501

BATCH:AGY 200 DATE 11022005 TYPE 5 NO 142 MODE MASTER EDIT ONLY SEQ-NO 00001

                                                                              

CUR-DOC/SFX: AJ110009 01 TRANS-CODE: 130          RVS:     DISB-METH:         

REF-DOC/SFX:                              MOD:              BFY: 00    GAAP IND:         

INDEX      : 5500                           SEC AGENCY: 140                      

PCA        : 5400                               SUBSID: 1400000  PCN:          

EXP-SUB-OBJ/DET:                                                              

REV-SUBOBJ/DET: 5420                                                              

AMOUNT   : 5.00                 WARR-NO:                BU:         GLA:      

DOC TOTAL:                        PROP#:              CMP#:          CI:      

INV-NO :                INV-DESC :                                            

VEND-NO:                   NAME  :                                            

                           NAME 2:                                            

                           ADDR  :                                             

                           CITY  :                 STATE:    ZIP:             

GRANT/PH:              PROJ/PH:              FUND/DET:            F/O:        

     MPC:                  LOC:                   FAC:            TSK:        

DOC-DATE: 11022005       EFF-DATE: 110205 DUE-DATE:            INTERRUPT:       

 

The fiscal codes in the TC 130 example are described below.

 

​Data Element ​Description

CUR-DOC/SFX

Enter an eight character Current Document Number and two digit suffix. This becomes the Document Number on the Document File. NOTE: We recommend using all eight characters.

TRANS-CODE

Enter Transaction Code 130.

INDEX or PCA

Enter a four-digit Index if your agency is Index-driven or a five-digit PCA if your agency is PCA-driven. Your Index or PCA usually looks up a Fund and Budget Unit, which are also required elements. (If the PCA does not look up the Index, the Index must be manually entered.

SEC AGENCY

Enter a three digit number that is the agency number of the agency you are billing. The Second Agency must match the agency paying the bill.

SUBSID

Enter a seven digit Subsidiary number, which is the Subsidiary number of the agency you are billing. Since TC 130 has a 1502 G/L, use a Subsidiary number with a 1502 G/L from the Descriptor Table 23, Table-Entry-Key 32 (Subsidiary Table). Click here for a list of Subsidiary numbers.

REV-SUB-OBJ/DET

Enter a four digit revenue subobject (you can also use a two-digit detail). The generated TC 170 will use this revenue subobject to post your revenue when the paying agency makes their payment.

AMOUNT

Enter the amount you are billing the agency.

DOC-DATE

Enter the document date (MMDDYY). This is usually the date on the completed IAB form or may be the date when you provided the goods or services.

 

Important tips for entering TC 130:

 

  1. Enter the eight character Current Document Number.
  2. Ensure you have the agency you are billing as the Second Agency on your TC 130 transaction.
  3. If you enter a vendor number, ensure that the vendor number belongs to the agency you are billing.

Paying Agency - Pay an Interagency Billing

The paying agency uses either a TC 240 or TC 241, depending on whether or not they encumbered the funds, and uses the Current Document Number from the IAB form as the Invoice Number. Either transaction code requires an approval level 3.

 

STARS will automatically generate a TC 170 transaction for the billing agency:

  • STARS uses the Invoice Number as the Reference Document Number/Sfx.
  • STARS uses the Second Agency code to verify that the receivable and payment match.
TC 240 - Record a direct payment of an interagency billing not previously encumbered (Due To)
TC 241 - Record a direct payment of an interagency billing previously encumbered (Due To)
  1. For either transaction code 240 or 241, enter the Agency Number of the billing agency in the SEC AGENCY field.
  2. Enter a Subsidiary Number (SUBSID) indicating who you are paying. Click here for a list of Subsidiary numbers.
  3. Enter the billing agency’s Current Document Number and Suffix (with no spaces) in the Invoice Number (INV-NO) field. This is also the Document Number on the Document File. This information should be on the IAB form sent to you by the billing agency.

With these transaction codes, STARS automatically generates a TC 170 to post the payment to the billing agency. No warrant is generated. (The billing agency manually enters a TC 170 only if they receive a warrant from the paying agency.)

A TC 241 records an expenditure and reduces the encumbrance. A TC 241 posts to encumbrances on the Document File. For this transaction code, you must enter a Reference Document Number (REF-DOC/SFX), and this should be the same number as the Current Document Number that was used to originally set up the encumbrance.

The following is an example of a TC 240 for an Index-driven agency (if the Index does not look up the PCA, you must enter the PCA). NOTE: STARS will automatically fill in the BFY and EFF-DATE.
 

VERSION 3.1        STARS--PRE-ENC/ENC/EXPEND TRANSACTION ENTRY           S505 

BATCH: AGY 140 DATE 08011999 TYPE 4 NO 100 MODE MASTER EDIT ONLY  SEQ-NO 00001

                                                                               

CUR-DOC/SFX: PAYIAB99 01 TRANS-CODE: 240          RVS:      DISB-METH:         

REF-DOC/SFX:                   MOD:              BFY: 00    GAAP IND:         

INDEX      : 2502 ACCOUNTING ADMIN.         SEC AGENCY: 230                     

PCA        :                                    SUBSID: 2300000  PCN:          

EXP-SUB-OBJ/DET: 5199      OTHER PROFESSIONAL SVCS                             

REV-SUB-OBJ/DET:                                                              

AMOUNT   : 0000000555.35         WARR-NO:                BU: SCBA               

DOC TOTAL: 0000000000.00          PROP#:              CMP#:          CI:      

INV-NO : IABJUL9901      INV-DESC : JULY PAYMENT INTERAGENCY BILL              

VEND-NO: 826000952 97         NAME  : DEPARTMENT OF CORRECTION-STATE OF IDAHO   

                           NAME 2:                                            

                           ADDR  : STATEHOUSE MAIL                            

                           CITY  : BOISE           STATE: ID ZIP: 83720       

GRANT/PH:              PROJ/PH:              FUND/DET: 0001       F/O:        

     MPC:                                                                     

DOC-DATE:        EFF-DATE: 081699 DUE-DATE:            INTERRUPT: 


The fiscal codes for a TC 240 or TC 241 are described below.

 

​Data Element​Description

CUR-DOC/SFX

Enter an eight character Current Document Number and a two digit Suffix. Do not use the same number as the Invoice Number.

TRANS-CODE

Enter transaction code 240 or 241 depending on whether or not you have encumbered the funds.

REF-DOC/SFX

(TC 241 Only)

Enter the eight character encumbrance number and two digit suffix to which you wish to post the payment. Use the Current Document Number used to set up the encumbrance.

INDEX or PCA

Enter a four digit Index if your agency is Index driven or a five digit PCA if your agency is PCA driven. Your Index or PCA usually looks up a Fund and Budget Unit, which are also required elements.

SEC AGENCY

Enter a three digit second agency that is the agency number of the agency you are paying. If you are paying within your agency, use your agency number.

SUBSID

Enter a seven digit Subsidiary number, normally the Subsidiary number of the agency you are paying. Since the TC 240 posts to the 2202 G/L, use a Subsidiary number with a 2202 G/L from the Descriptor Table 23, and TABLE-ENTRY-KEY 32 (Subsidiary Table). Click here for a list of Subsidiary numbers.

(TC 240 has both a debit and credit to the same G/L 2202, so the posting will net to zero. Thus, the Subsidiary number you use is not important as long as it is a 2202 G/L Subsidiary number.)

EXP-SUB-OBJ/DET

Enter a four digit expenditure subobject (you can also use a two digit detail).

AMOUNT

Enter the amount of the transaction for this funding source. This is the amount you owe the agency.

INV-NO

Enter a 10 character invoice number using the eight character Current Document Number and two digit Suffix from the billing agency (Section A of the IAB form). If you are paying two interagency billings, you should do them on separate transactions since the Invoice Number will be different.

VEND-NO

Enter the nine digit vendor number and two digit suffix of the agency you are paying. STARS will post the TC 240 payment to this vendor number on the Vendor Payment File.

 

Important tips for entering TC 240 or TC 241:

 

  1. Enter the payment based on the Interagency Billing Form IAB.
  2. Enter the 10 digit Invoice Number using the eight character Current Document Number plus the two digit SFX number from Section A of the IAB form. If you are paying two interagency billings, do so on separate transactions since the Invoice Number will be different.
  3. On a TC 241, the Document Number on the Document File from the TC 215 (paying agency’s encumbrance) becomes the Reference Document Number.
  4. Be sure you have the billing agency as the Second Agency code.
  5. Double-check the Vendor Number to be sure it belongs to the agency you are paying.
  6. If the invoice number on the IAB form is not the number the billing agency has on STARS, contact the billing agency to get the correct invoice number.

STARS Generated Transaction Codes

TC 170 - Records the collection of a Due From other funds or appropriations

STARS will automatically generate a TC 170 when the paying agency processes a TC 240 or 241. (The billing agency manually enters a TC 170 only if they receive a warrant from the paying agency.) The TC 170 posts the payment to the Cash and Document Files and liquidates the original ‘Due From’ established by the billing agency. This TC deposits cash as a receipt to the billing agency in a STARS-generated batch type "Z". No warrant is created. This transaction code requires approval level 3.

 

IMPORTANT: Do not enter this transaction unless you receive a warrant for the interagency billing. If you do receive a warrant for an interagency bill payment, deposit the warrant using TC 170 and a Reference Document Number of the document you are paying as described below.

 

The following example indicates the minimum fiscal codes to post a TC 170 transaction. NOTE: STARS will automatically fill in the BFY and EFF-DATE. Press F5 and STARS will look up the other fields from the Document File.

 

VERSION 3.1        STARS--GENERAL PURPOSE TRANSACTION ENTRY              S501 

BATCH: AGY 200 DATE 08161999 TYPE Z NO 907 MODE MASTER EDIT ONLY SEQ-NO 00031 

                                                                               

CUR-DOC/SFX: EXP00098 13 TRANS-CODE: 170          RVS:      DISB-METH:         

REF-DOC/SFX: 00071201  01        MOD:              BFY: 00    GAAP IND:         

INDEX      :            SEC AGENCY:                                           

PCA        :                              SUBSID:               PCN:          

EXP-SUB-OBJ/DET:                                                              

REV-SUBOBJ/DET:                                                                

AMOUNT   : 0000002600.00         WARR-NO:                BU: ADAL    GLA:       

DOC TOTAL: 0000000000.00          PROP#:              CMP#:          CI:      

INV-NO :                   INV-DESC :                                                            

VEND-NO:                   NAME  :                                            

                           NAME 2:                                            

                           ADDR  :                                             

                           CITY  :                 STATE:    ZIP:             

GRANT/PH:              PROJ/PH:              FUND/DET:            F/O:        

     MPC:                  LOC:                   FAC:            TSK:        

DOC-DATE:        EFF-DATE: 081699 DUE-DATE:            INTERRUPT:             

 

The fiscal codes for a TC 170 are described below. We recommend entering only these fiscal codes, allowing the system to lookup the rest of the fiscal codes and other data from the Document File.

 

​Data Element​Description

CUR-DOC/SFX

Enter an eight character Current Document Number and two digit Suffix. Use any document number you wish.

TRANS-CODE

Enter transaction code 170.

REF-DOC/SFX

Enter the eight character Document Number and two digit Suffix from the Document Number on the Document File to which you wish to post the payment. Remember, you will be paying a Due From (G/L 1502) document. If you are posting to two interagency billings, use separate transactions since the Ref-Doc/Sfx must be different.

AMOUNT

Enter the amount of the payment received to post against the document. This is the amount you receive from the paying agency.

 

Important tips for a TC 170:

 

  1. STARS will normally generate a TC 170 payment transaction – you should not have to manually enter one. The billing agency manually enters a TC 170 only if they receive a warrant from the paying agency. Ask the paying agency to use the correct transaction code (TC 240 or TC 241) to have STARS automatically generate the TC 170.
  2. The Document Number on the Document File from the TC 130 (billing agency’s Due From) becomes the Reference Document Number on TC 170

STARS Generated Z Batches

If the transaction code used has been set up with another transaction code in the GEN-TC field on the Transaction Code Decision Table, STARS will generate the GEN-TC transaction code after processing the current transaction.

 

STARS groups all generated transactions from the nightly IEU processing into one batch type “Z” per agency. Once STARS generates the batch, do not change the amounts or transaction codes on these transactions. You cannot delete batch type Z transactions.

 

The following is an example of a STARS-generated batch. (This shows as a batch type Z on the F12 View or Select Batch Headers screen. “Z” batches are only visible if they have erred.)

 

  • The Z in the BATCH ID TYP column indicates the Z batch generated by STARS.
  • The H in the BATCH  STA column shows the batch is in a Hold Status. The BATCH MODE of 3 indicates an error.

VERSION 3.1         STARS--VIEW OR SELECT BATCH HEADERS                   S530

                                                                              

 FUNCTION: F (F=FIRST PAGE, N=NEXT PAGE, S=SELECT BATCH)                      

                                                                              

           AGENCY:  230                                                       

S ----BATCH ID----    BATCH EFFECT  ENTERED     ENTERED        COMPUTED      

   DATE   TYP NO MODE STA BAL DATE AL COUNT      AMOUNT          AMOUNT      

  08061999 4 949   1   H   Y 080699 3 00001 0000000299.99   0000000299.99     

  08101999 2 200   2   H   Y 081599 0 00000 0000000000.00   0000000000.00     

  08161999 Z 900   3   H   Y 081699 0 00006 0000013371.63   0000013371.63            

                                                                              

 

“Z” batches contain any collection of system generated transactions. For example, interagency billing TC 170s and transfer-in TC 551s can be in one batch. In addition, STARS combines generated payments to your agency from all the different agencies’ in one “Z” batch for each nightly processing.

Important Interagency Billing Fiscal Codes

In order to automate the interagency billing process, the paying and billing agencies must use specific fiscal codes. Those fiscal codes include:

 

  • Current Document Number
  • Invoice Number
  • Second Agency code
  • Subsidiary Number

When an interagency bill (Due From receivable) is set up, STARS creates a record in the Document File and uses the Current Document Number on the interagency billing entry (Due From receivable) as the Document Number on the Document File.

​Fiscal Codes​Description

Current Document Number

CUR DOCUMENT # (IAB form)

CUR-DOC/SFX (STARS)

A billing agency must use a Current Document Number when they create an interagency billing (Due From receivable). A Current Document Number is eight alphanumeric characters and a two digit suffix. (Use all eight characters of the Current Document Number.

Invoice Number

INVOICE # (IAB form)

INV-NO (STARS)

 

When the paying agency receives the interagency bill (via the IAB form), they must use the Current Document Number and Suffix from the interagency billing (Due From receivable) as the Invoice Number when entering their payment.  On the IAB form the CUR DOCUMENT # and SFX from Section A (billing agency) is used as the INVOICE # in Section C (paying agency).

Second Agency Code

SEC AGY (IAB form)

SEC AGENCY (STARS)

The Second Agency Code is the Agency Number of the agency with whom you are doing business. So for the billing agency, the paying agency is the second agency. For the paying agency, the billing agency is the second agency. STARS uses the second agency code as a control element, along with Current Document Numbers. The Second Agency Code is a required field for all interagency transactions.

Subsidiary Account Number

SUBSIDIARY (IAB form)

SUBSID (STARS)

Subsidiary account numbers (or ‘Subsidiary numbers’) are details within the general ledger accounts. Both the billing and the paying agency must have Subsidiary numbers set up on the Descriptor Table 32 (D32). You could use a specific Subsidiary number to identify the agency you are billing or are paying. You could also use different Subsidiary numbers to identify the different programs and associated billings within one agency. Whatever Subsidiary number you decide to use, be sure to use that number on the interagency billing IAB form.

Subsidiary Account Numbers and General Ledger Accounts

Subsidiary numbers are details within General Ledger accounts. Most Subsidiary numbers are already set up in STARS and will show as detail on your Trial Balance reports. Each Subsidiary number must be related to a specific General Ledger account. The Due From General Ledger account is 1502 (TC 130) and the Due To General Ledger account is 2202 (TC 240/241). Click here for a list of Subsidiary numbers.

 

The Subsidiary number you use depends on the transaction code (TC) that you use.

 

Interagency Billing Forms

STARS IAB Form

Both the billing agency and paying agency can use the IAB form to record the interagency billing and subsequent payment on the STARS. The billing agency should send a copy of the form to the paying agency so they can pay the bill. Click here for the IAB (Interagency Billing) PDF form.

STARS Descr-23 Form

Since Subsidiary numbers are integral to interagency billings, the State Controller’s Office enters Subsidiary numbers at the request of the agency. You can use the Descriptor Table Maintenance Form and send it to the State Controller’s Office.

Once SCO receives the form, they will update the Descriptor Table 23.