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ADMINISTRATIVE POLICY
Intercompany Transactions Policy
Approval Authority: Vice Chancellor for Finance, Information Technology and CFO
Responsible Administrator: Controller
Responsible Office: Finance
Policy Contact: Director of Accounting and Financial Reporting
POLICY STATEMENT/REASON FOR POLICY
This document defines the policies for recording transactions between Vanderbilt entities, wherein
one entity is the provider of goods or services and one entity is the receiver of goods or services.
THIS POLICY APPLIES TO
This policy applies to all personnel in the initiation, processing and authorization of Vanderbilt
University transactions in the Intracompany Transactions (ICT) module.
POLICY
A. The intracompany account must only be used to record activity between Vanderbilt entities.
B. The intracompany account should not be used to record activity between Vanderbilt and an
external party; likewise, intracompany transactions and allocations must never be recorded in
external revenue and external expense accounts.
C. Entries to record such activity should be a debit to the receiver and a credit to the provider.
D. No transactions should be processed with an intracompany account on one side and an
external revenue or external expense account on the other side.
DEFINITIONS
Intracompany transactions - Transactions incurred to record the cost of goods or services
exchanged between two Vanderbilt entities where one entity provides a good or service and one
receives a good or service. A few examples include:
o Printing services charges an entity for a printing job
o Plant operations charges entities for utilities and repairs and maintenance
o Dining/catering charges entities for meals
Provider - Vanderbilt entity providing a good or service to a receiving entity.
Receiver - Vanderbilt entity receiving a good or service from a providing entity.
Originally issued:
January 2018
Current version
effective as of:
July 2023
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CONSEQUENCES OF NON-COMPLIANCE
The Controller will review ICT transactions at least annually and will reach out to non-compliant
departments for further action, which could include removal of access to the ICT module in
Oracle.
PROCEDURES
ICT Template
ICT Example
ADDITIONAL CONTACTS
Subject Contact/Position Office Phone
Intercompany
Questions
Finance Accounting (615) 343-6601
Accounting
Questions
Finance Accounting (615) 343-6601
HISTORY
Issued: January 2018
Reviewed: June 2023
Amended: June 2023
