How to Adjust an Interagency Billing​

Billing Agency Adjustments

The billing agency creates an interagency billing (IAB) by using a TC 130 and sending an Interagency Billing Form to the paying agency. The billing agency receives payment from the paying agency.

TC 131/131R – Increase or Decrease the Amount Billed

The billing agency can adjust the amount of interagency billing at any time:

  • Use a TC 131 to increase the amount. Enter the amount of the increase.
  • Use a TC 131R to decrease the amount. Enter the amount to reduce the IAB.

When entering these transaction codes, enter the Current Document Number from the original TC 130 transaction in the REF-DOC/SFX field of the TC 131 or 131R transaction.

TC130R/130 - Billed the Wrong Agency or Close or Cancel an IAB

  • If you billed the wrong agency, you must cancel the entire amount of the IAB using a TC130R. Then re-enter it using a TC130. To re-enter the IAB, you can use the same Document number as the one you have closed, but use a different Suffix.
  • To close or cancel the IAB, use a TC130R for the entire amount and all other information from your original TC130 (that created the IAB).

TC 170R/170 - Adjust a Payment Received

If an incorrect amount was paid, the paying agency should make the correction using a TC 240/240R.

The billing agency can make adjustments for certain situations. For example:

  • If the paying agency used the wrong Invoice Number, use a TC 170R identical to the original transaction, Then, in the same batch, enter a TC 170 using the correct invoice number in the Reference Doc Number field. (Note: The TC 170 does not send cash back to the paying agency.)
  • If you receive a warrant from the paying agency, deposit the warrant using TC 170, and use the Invoice Number as the Reference Document Number (the Ref Doc field).
    • If you have already deposited the warrant (e.g., with a TC 105), create an Adjustment batch (A), and enter a transaction to reverse the transaction code of the deposit (e.g., 105R). Then enter with a TC 170 transaction to post against the document.
  • If the paying agency pays multiple invoices using one Document number (i.e., “one payment”), enter a TC 170R for the amount you need to reduce one invoice to its proper amount. Then enter the a TC 170 using the correct invoice number and suffix for the remaining amount(s).

TC101R/101 – Correct Fiscal Coding of a Payment Received 

If you need to correct the fiscal coding of a payment you have received, enter a 101R with the fiscal coding of the payment, then enter a 101 with the correct fiscal coding. 

Paying Agency Adjustments

The paying agency uses either a TC 240 or TC 241, and uses the Current Document Number from the billing agency IAB form in the Invoice Number, being sure to enter the invoice number and suffix as one number – no spaces or dashes.

TC 240/240R - Adjust an Underpayment, an Overpayment, or Make a Partial Payment

  • If you have underpaid the IAB entering the remaining amount, or want to pay only part of the invoice amount, enter a TC 240 transaction.
  • If you have overpaid the IAB, enter a TC 240R transaction. Enter the same information as the original transaction, but enter the amount that was overpaid.

TC 240R/240 - Correct an Invoice Number

Use a TC 240R with the same information used on the original TC 240 transaction.

Then use a TC 240 with the same information used on the original TC 240, and enter the correct Invoice Number, being sure to enter the invoice number and suffix as one number – no spaces or dashes. 

TC 27A/27B – Correct a Payment With the Wrong PCA or Vendor Number

If you paid the IAB using a wrong PCA or Vendor Number, enter the following in the same batch:

  1. Enter a TC 27A with the same information as the original payment.
  2. Enter a TC 27B transaction with the same information, but using the correct PCA or Vendor NUmber 

TC241 - Payment of Interagency Bill on a Prior Year Encumbrance

  • If a TC 241 payment was overpaid on a prior year encumbrance, please contact the to have them make the adjustment.

Outstanding Receivables and Payables Reports

Interagency billing reports are available on IBIS.

In addition, the billing agency can monitor outstanding receivables (including overpayments) with the DAFR0139 Report.

The paying agency can monitor outstanding payables (including overpayments) with the DAFR2410 Report.