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Accounts Payable Advisory
Office of Operations
Bureau of State Expenditures

Advisory Number: 31
Advisory Name: Accounting for Utility Payments
Date Issued: 08/21/2013 Date Last Updated: 08/21/2013
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.


Category

Account Code

Description

Electricity

52001

Electricity Commodity

52002

Electricity Transmission

Gas Commodity

52020

Methane

52021

Natural Gas

52022

Propane (non-vehicle use)

Gas

52025

Gas Transmission

Heating & Cooling Fuel Commodity

52030

H&C Commodity – Bio Oil

52031

H&C Commodity – Bio Oil Blend

52032

H&C Commodity – Chilled Water

52033

H&C Commodity – Coal

52034

H&C Commodity – Low Sulfur Coal

52035

H&C Commodity – Oil #2/Diesel

52036

H&C Commodity – Oil #4 & #6

52038

H&C Commodity – Other Fuels & Additives

52039

H&C Commodity – Steam

52040

H&C Commodity – Wood

52041

H&C Commodity –  Unclassified Fuel

Heating & Cooling Fuels

52050

H&C - Transmission

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