Subject:

Importance of separating commodity and transmission charges when processing utility invoices for payment

Guidance:

It has come to our attention that some Business Units are not separating commodity and transmission charges when processing utility payments. Consistent with the Guide to Financial Operations (GFO), Chapter XII, Section 5.L.2 - Distribution Line Field, Business Units should ensure the ChartField String (charge line) is correct and appropriate based on the goods and services purchased. Therefore, when processing utility bills, Business Units must separate commodity and transmission charges into two distribution lines. This will ensure accuracy of the related expenditure account code information and will position NYS to obtain the best pricing for future commodity purchases.

Business Units are advised that any transactions posted in SFS since April 1, 2013 involving commodity and transmission charges must be reviewed and, where necessary, reclassified to the proper account code by March 15, 2014.

If Business Units receive invoices with commodity and transmission charges combined, they should return the invoice to the vendor and request a proper invoice with the charges separated.

Please see the table below for account codes relating to commodity and transmission charges for utilities: