Division of Financial Services
Financial Information Services
Payment Reasons are used to identify the reason for the disbursement in a Disbursement Voucher (DV) and determines any restrictions that might be on the disbursement. Certain payment reasons might restrict the other choices you are able to make on the DV. For example, most payment reasons only allow certain object codes, and some are restricted to certain payee types such as employees or vendors.
Some payment reasons can be used only by specific departments or for very limited purposes. For the purpose of associating payment reasons with their permitted use, they can be grouped into the following categories:
The following table provides a sortable list of payment reason codes used in KFS, along with descriptions and special instructions for their use.
| Payment Reason Code | Payment Reason Name | Payment Reason Description | Category | Special Instructions |
|---|---|---|---|---|
| A | Prize and/or Award | Payments made for prizes and awards must be made to non-employees only. Awards may not include personal services or scholarship or fellowship payments. For payments of prizes and awards to university employees, please contact University Payroll. This payment reason can be used for payments for punitive damages or settlements. Support payments can only be made to outside organizations for authorized purposes. This would also include payments in lieu of flowers. | Others used by units | |
| B | Reimbursement for Out-of-Pocket Expenses | Reimbursement for out-of-pocket expenses may be made to university employees. These reimbursements are paid to an individual who incurs out-of-pocket expenses on behalf of their departmental business operations due to an emergency. This payment reason may not be used in lieu of the procurement process. No travel, meals, or personal service payments may be made using this payment reason. | Restricted use | Reimbursements of this type should be rare because a "reimbursement" is generally an authorized payment method used only for travel. |
| D | Respect to Decedent Compensation Payment | Limited to payment on behalf of deceased employees, retirees, or payees, such as refunds of retiree health insurance. See Prize and/or Award for payments in lieu of flowers. | Central use only | |
| E | Compensation for Services | Compensations for services can be used only for non-employees. These services include artist fees, athletic officials, DJs, etc. | Restricted use | In most cases, compensation for services requires a purchase order. |
| F | Refund/Repayment to Indiv or Ext Org | Refund/repayment to an individual or agency is a payment for returned goods sold, services rendered, or overpayment. This reason can also include repayment to agencies for contract or grant funding. | Restricted use | |
| G | Communications/Delivery/Utilities | Payments for communications, freight, delivery, express mail, and postage. Payments for water, sewer, electric, fuel oil, natural gas, and other utilities. | Others used by units | |
| H | Employee Benefits & Payroll Withholding | Payments for institutional benefit programs and voluntary payroll deductions. | Central use only | |
| J | Employee/Student Travel Reimbursements | Travel reimbursement from the legacy Travel Reimbursement System. Specific procedures must be followed, including cross-referencing the trip number. To be used only for travel from the Travel Reimbursement System. Do not use this payment reason to pay companies. To be replaced by the KFS Foundation Travel Solution at a future date. | Travel-related | Use for travelers with a Cornell NetID (use the legacy Travel Reimbursement System in conjunction with a DV). |
| K | Univ PettyCash Custodian Replenishment | Payment to a petty cash custodian for the purpose of replenishing a petty cash fund. | Restricted use | Payments can only be made to employees set up as petty cash custodian vendors. Regular DV vendors are not eligible for this payment reason. |
| L | Payments for Contractual Agreements | Limited use for contracts that can be paid without a Purchase Order (PO). The reason can also be used when a PO must be paid by foreign currency/wire or domestic wires. | Others used by units | Use for contractual payments otherwise not described in other payment types (requires "authorized contract"). |
| M | Moving Reimbursement | Moving reimbursements are payments to new university employees for relocation/moving expenses. These payments are subject to university policy on moving expenses and may be subject to tax withholding/reporting. | Travel-related | Use for travel expenses related only to moving a new employee to a new and regular job site. This is an Internal Revenue Service (IRS) concept and does not apply to students or postdocs unless they are paid as employees through payroll. |
| N | Travel Payment for a Non-employee | Travel for a non-employee reason is used when a reimbursement for travel expenses is to be made to a non-employee. This payment reason may not be used for employee/student travel. | Travel-related | Use for reimbursements for travelers without a Cornell NetID. |
| O | Honoraria | Gratuitous (not required) payment to individual (must be charged to Federal Unallowable object code). | Others used by units | |
| P | Travel Payment for Prepaid Travel | Travel payment for prepaid travel should be used for any prepaid travel, including conference registration, lodging, limousine, and airfare. This payment reason can also be used when direct payment of travel expenses is allowed. | Travel-related | Use for authorized direct payment to a vendor for travel. |
| R | Royalties/Permission Fee | Direct payments to owners of royalties, rights, and permission fees should use this payment reason. In situations where employees are to be paid these fees, they must be set up as vendors. | Others used by units | Use for direct payments to the owners of royalties and permission fees. |
| S | Stipends | Periodic payments to individuals who are not degree students or employees. | Restricted use | Use limited to postdoctoral fellows supported by training grants or non-matriculated students supported by specified funds (i.e., REUs) or visitors to Cornell for research collaboration who are not performing services for Cornell. |
| T | Rental/Lease Payment | Payments for rental space. Leases must be signed by the university real estate office. | Others used by units | |
| U | Insurance/Licenses/Taxes | Real property or equipment insurance, membership or licensing fees, taxes real property, institutional debt service. | Restricted use | Related to central offices, not to units. Evaluate before processing. |
| W | Subscription/Periodical/Authorized Resale | Subscription and periodicals may be used when a procurement card cannot be used for any payment covering a renewal or subscription to a newspaper or magazine. Include a ship to address in the check stub text are for the vendor's convenience. May also used by authorized resale operations for the purchase of goods for resale. | Others used by units | Authorized resale operation examples: Cornell Store, Statler Hotel, Campus Life, etc. |
| X | Travel Advance | Travel advance for approved business travel and other authorized advances to employees. | Travel-related | |
| Z | University Bank/Cash Funding Restr Use | Restricted use. Used to fund university bank accounts, cash drawers, and to start up petty cash funds. | Restricted use | Processed by units with retail operations that require cash drawers, or funding for bank accounts or petty cash. |
