Skip to content

    Pages for:

  • Faculty
  • Staff
  • Students
Cornell University
Cornell University
Division of Financial Services
Accounting
  • About
    • Contact
    • News
  • Chart of Accounts
    • Transaction String
    • Accounts
      • Sub-Accounts
    • Object Codes
      • Sub-Object Codes
      • Revenue Object Codes
    • Function Codes
    • Fund Groups
    • Charts
    • Organizations
    • Using Sub-Accounts and Sub-Object Codes for Activity Tracking
    • Managing Accounts
  • Topics
    • Abandoned Property
    • Accounts Payable
      • AP Payment Schedule
      • Direct Deposit for Reimbursements
      • Check and Electronic Payments
      • Foreign Currency Payments
      • Help for Payees
      • Help for BSCs
    • Accounts Receivable
      • Interdepartmental Billings
        • Authorized Direct Charge Processors
      • Registering Cornell in an External Entity’s Payment System
      • Writing Off Uncollectable Receivables
    • Deposits
    • External Organizations
    • Gift Funds
      • Indirect Cost on Gifts
      • Receiving Gifts
      • Gift Restrictions
      • Managing Restricted Gift Accounts
    • Interdepartmental Activity
    • Inventory Accounting Guidelines
    • Lease Classification
    • Petty Cash and Cash Drawers
    • Plant Construction Funds
    • Reconciliation Guidelines
      • Reconciling Asset and Liability Object Codes
      • Monitoring Operating Activity
      • Object Code Reviews
      • Correcting Unknown Variances
    • Reserve Accounts
    • Revenue Classification
      • Tuition and Student Fees
      • Government Appropriations
      • Grant and Contract
      • Gifts and Contributions
      • Medical Services
      • Investment Earnings
      • Auxiliary Enterprises
      • Educational Activities
      • Other Sales and Services
      • Interdepartmental Revenues
      • External Organization Income
      • Accounts Receivable
      • Allowance for Doubtful Accounts and Bad Debt Expenses
      • Accruals/Deferred Revenue
      • Revenue vs. Expense Reimbursement
      • Revenue Matrix
    • Transferring Funds
    • Travel Advances and Prepaid Expenses
    • WCM Accounts
      • Processing Entries to WCM
  • Invested Funds
    • Current-Year Long-Term Investment Pool Rates
    • Prior-Year Long-Term Investment Pool Rates
    • Investing in the Long-Term Investment Pool
    • Investment Glossary
  • Year-End
    • Account Reversion
    • KFS Payment Processing E-docs (DV, PREQ, PCDO)
    • Cash Deposits at Year-End
    • Revenue and Expense Year-End Accruals
    • Deadlines
  • forms
  • CU policies
  • training
  • KFS Support
  • e-SHOP

In this section

  • Abandoned Property
  • Accounts Payable
    • AP Payment Schedule
    • Direct Deposit for Reimbursements
    • Check and Electronic Payments
    • Foreign Currency Payments
    • Help for Payees
    • Help for BSCs
  • Accounts Receivable
    • Interdepartmental Billings
      • Authorized Direct Charge Processors
    • Registering Cornell in an External Entity’s Payment System
    • Writing Off Uncollectable Receivables
  • Deposits
  • External Organizations
  • Gift Funds
    • Indirect Cost on Gifts
    • Receiving Gifts
    • Gift Restrictions
    • Managing Restricted Gift Accounts
  • Interdepartmental Activity
  • Inventory Accounting Guidelines
  • Lease Classification
  • Petty Cash and Cash Drawers
  • Plant Construction Funds
  • Reconciliation Guidelines
    • Reconciling Asset and Liability Object Codes
    • Monitoring Operating Activity
    • Object Code Reviews
    • Correcting Unknown Variances
  • Reserve Accounts
  • Revenue Classification
    • Tuition and Student Fees
    • Government Appropriations
    • Grant and Contract
    • Gifts and Contributions
    • Medical Services
    • Investment Earnings
    • Auxiliary Enterprises
    • Educational Activities
    • Other Sales and Services
    • Interdepartmental Revenues
    • External Organization Income
    • Accounts Receivable
    • Allowance for Doubtful Accounts and Bad Debt Expenses
    • Accruals/Deferred Revenue
    • Revenue vs. Expense Reimbursement
    • Revenue Matrix
  • Transferring Funds
  • Travel Advances and Prepaid Expenses
  • WCM Accounts
    • Processing Entries to WCM

See also

  • Sponsored Financial Services
  • Capital Assets
  • Cost Analysis

Revenue vs. Expense Reimbursement

Occasionally, the university makes an agreement with an external entity to share the expenses of a particular activity. It might be more efficient or convenient for the department to initially pay all the expenses; however, the cost of that activity on the university’s books should only reflect its share of the expenses. In these situations, the funds received from the other party should be recorded as a reimbursement of expenses and not as revenue. Revenue should only be recorded as the result of revenue-generating activities, like providing a good or service.

If the agreement with the external entity relates to a revenue-generating activity (e.g., a conference), then the full costs of the activity should be reflected, and support from an external entity would be considered another source of revenue. This determination can sometimes be difficult; consult with DFS for assistance.

The following are examples of when a receipt should be treated as an expense reduction:

  • Refunds or rebates from a vendor for goods or services purchased from the vendor.
  • Reimbursement of personal usage of university resources, such as a photocopier, by employees when the resources involved are typically not used to provide services on a fee-for-service basis.  Such usage is normally not allowed, but may happen for insignificant and incidental items.
  • Reimbursement of items purchased to facilitate an activity (e.g., selling t-shirts at cost to participants of the activity). Note: There may be sales tax implications; contact the University Tax Office.
  • Reimbursements from employees or students for lost university property.
  • Payment of worker’s compensation claims from an insurance company.  In this case this is an expense reduction, because it reduces the cost of lost productivity.

To make an entry for expense reimbursement, make a credit entry to decrease the expense and a debit entry to note the reimbursement. For example:

DR  Cash (system generated entry on object code 1000)

CR  Expense (corresponding to the initial expenditure)

Division of Financial Services

377 Pine Tree Road, East Hill Plaza
Ithaca, NY 14850

Hours:  8:00 a.m. - 4:30 p.m., Monday - Friday

CONTACT US


  • DFS Home
  • Website Feedback
  • Contact DFS
  • CUInfo
  • For DFS Staff
  • Executive Vice President and CFO
  • University Audit Office
  • Office of University Investments
  • Division of Budget and Planning
  • Risk Management and Insurance
  • Cornell University Policy Office
  • Alliance for Diversity and Inclusion
  • Cornell United Way
  • Campus Alerts
  • COVID-19 Etiquette for Faculty and Staff

©2025 Cornell University

Web Accessibility Assistance