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Understanding Transaction Departments and Purchase Requisitions in Accounting Processes

This document outlines the role of the Transaction Department (Tx Dept) in purchase requisitions and accounting procedures. It highlights how Tx Dept typically corresponds with the Owner Department but allows for other configurations based on departmental needs. Examples illustrate scenarios where different departments might initiate requisitions using each other’s funding, aiding in tracking financial activities accurately. The text also covers similar concepts for payment requests, P-Card reallocations, journal entries, and cash receipts, emphasizing clarity in financial transactions.

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Understanding Transaction Departments and Purchase Requisitions in Accounting Processes

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  1. Transaction Department (TX Dept) Purchase Requisitions- In most cases, Tx Dept will match Owner Dept. However, other options are possible depending on the dept’s operating procedures and need to track certain characteristics of the accounting event. Example #1 - Tx Dept could represent the department benefiting from the purchase (the SOM Dean’s Office example of using a central Revolving Fund for Academic Commitments). Example #2 - should Dept A agree to prepare a requisition for Dept B, while using Dept B’s funding source, then the Tx. Dept could represent the dept who initiated the requisition (in this case Dept A). Using Tx Dept in this manner would allow Dept B to “track” (by Tx Dept) those purchases that did not originate from their Dept. but charged their funds for the goods and services. Requests for Payments… Same as a Requisition – except Business Unit = PUR02 A/P Vouchers & Payments – Accounting lines originate from Requisition, then to the PO, so Tx Dept will come from the Tx Dept cited on the Requisition. P-Card Reallocation – In most cases, Tx Dept will represent the Re-allocator’s “Owner Dept”, which identifies who entered a charge (or credit) to your Chartstring. Journal Entries - In most cases, Tx Dept will represent the JE Initiator’s Owner Dept, which identifies who entered a charge (or credit) to your Chartstring. Cash Receipts – In most cases, Tx Dept will represent the “Owner Dept” who initiated the deposit.

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