This policy outlines the establishment and ongoing chargeback process at Ryerson University.
A chargeback occurs when one department provides a product or service to another department and seeks to recover the cost (direct & indirect costs) of the good or service on a per-use basis at an established price, or at a price based on an established standard pricing method.
This policy applies to all departments and faculties, but does not include units that operate in a retail capacity, e.g. University Business Services ("UBS"), Ryerson Image Centre, etc. Billings to external companies are not covered under this policy. (see http://www.ryerson.ca/policies/finance/accountsreceivablepolicy.html)
Costs that can be specifically identified with a good or service provided by a chargeback operation. These costs may include the salaries, wages and benefits of university faculty and staff directly involved in providing the good or service, as well as other direct costs such as materials, supplies, equipment rental or depreciation.
Indirect costs are defined as the costs of the infrastructure support for the activity. This may include administrative support, facilities, communications, systems and custodial/maintenance support.
1. All chargebacks must meet the following criteria:
2. HST is not applicable to internal chargebacks.
This policy falls under the jurisdiction of the Vice President Administrations and Finance. The interpretation and application of this policy is the responsibility of the Chief Financial Officer.
This policy is subject to review every three (3) years.