Billing Process

General Overview

This page is intended to serve as a point of reference for both the Business Office and Marketing Strategy and Client Services (MSCS) teams to understand how University Communications’ billing processes and related cycles work. UComm operates under a charge-back model which means that most on-campus partners are billed at our hourly rates for the work our team completes. Section III details exceptions to this process. View this process as a Google doc here.

This document is primarily focused on the billing and accounting components of projects. 

Billable vs. Non-Billable Projects 

At the start of projects, it is important to make the distinction of whether or not a project (or specific components) will be billable. There are certain units we work with that we do not charge as we would others. There are also certain positions in UComm which are funded by our partners, so pieces of those projects could be non-billable. 

To get started, you can gather the answers to these questions: 

Is the partner who requested this project one we can bill? 

• For some clients we do not charge creative fees.
  • Those partners include:
    • The Chancellor’s Office
    • The Office of the Vice Chancellor for Advancement
    • University Communications, News Relations, central PR/Issues Management and Social Media
    • University Special Events— if the event is a Chancellor-level event. Please note that if an event is for a college or unit, it is considered a billable project. (Examples: The 125th Textiles Anniversary Event is billable, and Red and White Night is non-billable.)
    • Development Communications and Stewardship— if the project is a Chancellor/VC for Advancement project. Please note that if the project is for a college or unit, it is considered a billable project. (Examples: Case statements, videos for colleges, major gifts, etc are billable. Requests supporting the AVC of Advancement are non-billable).
    • Even though we do not charge the above partners, it is important to track the hours as you normally would on billable projects in Function Fox- (as UComm Support). This is necessary to see our contribution to University Advancement 
    • It is also important to note that any hard costs, will be billed back. Please confirm their IDT number. 

Does anyone working on this project have a position that is funded by parties other than UComm? 

• There are several positions (“split” positions) that are funded in part by partners – for example, positions in the Social Media hub, certain writing positions (ex: Miriam w/ Sciences, Evan w/Alumni) 
• Once you know who will be on your projects team, you will be able to determine whether we should estimate time for all UComm parties or whether some of the work will be done via a split position, which means we will likely not charge for those components of work*

*If you have any questions about what time and/or positions are or are not billable, please ask April Norris, Executive Director of Marketing.

Vendor Costs

In addition to the costs partners incur from the hours our UComm team spends on projects, there may also be costs incurred from vendors. Examples of vendor work include printing costs, background music for videos, transcription of interviews, artwork solicited for print mailers, etc. 

It is important to think about potential vendor costs at the start of each project to ensure we have proper documentation for the Business Office and so that we estimate accurately for our partners. Below is a step-by-step process that includes a flow chart of what is needed when working with a vendor on any project. 

The MSCS team will need to discuss with their partners at the beginning of any project how they would like to handle vendor fees. There are two ways in which vendor fees can be paid: 

Option 1: UCOMM pays the vendor for their services and then bills the client for those charges at the final stage of billing. This is the preferred option for invoices under $5,000 as it keeps the MC in control of the production along with the ability to ensure deadlines are met. It also provides the greatest freedom to negotiate with vendors if something goes wrong. Refer to the “partner bill back” process detailed below for further information. 

Option 2: The 2nd option is to “pass-through” the vendor fees to the client so they are then responsible for paying all vendor fees. 

• The department paying for the PO will need to be the department to submit the Purchase Order (“PO”) for Purchasing
  • For example: If PCOMM needed a printing service that was going to cost over $5,000, at the beginning of the job they would need to submit a PO to Purchasing for print services. For more info on this process, please see this guide to departmental purchases
• If your project goes this route, please put a note in the Blog section of Function Fox including who the vendor is and how much the vendor cost was for record-keeping purposes only.
• Bid process documentation – See here

Partner Bill Back Process for Invoices Under $5,000

• The MSCS team should upload invoices for these projects directly to the Blog and Project Costs sections of Function Fox. They should also send an email to the Business Office alerting them of the invoice and that it needs to be paid
• Please note that vendor costs related to advertising (no matter the cost) should follow the process for invoices under $5,000 (detailed above)    

Partner Bill Back Process for Invoices Over $5,000

• The MSCS team needs to communicate with the Business Office regarding billing back for invoices over $5,000 within 48 hours of becoming aware this cost is going to be incurred. It is the partner’s responsibility to obtain a purchase order. Purchase orders typically take 6 weeks to process so the sooner this communication can begin, the better
• If UComm is billing back, there are a number of things that the Business Office will need to review on the invoice. This is why it’s important to send all invoices over $5,000 to the Business Office within 48 hours of receipt
• Please note that vendor costs related to advertising (no matter the cost) should follow the process for invoices under $5,000 (detailed above)    

A few things the MSCS can proactively keep an eye on in these situations: 

• Confirm the invoice is addressed to “NC State Foundation” and includes taxes (this is required for using foundation funds which are different and separate from state appropriated funds) for further questions please see the business office.
• Check the date as the University has a net 30 policy and is therefore expected to pay invoices within 30 days of the invoice date. This is part of why it’s important to get these invoices to the Business Office in a timely manner
• If it is a new vendor, they will need to fill out an ACH form and a W-9. A delay in doing so can mean a delay in getting the vendor paid

Below is a flowchart that puts the above into a visual form. 

Project Checklist

Below is a detailed checklist of the necessary documentation needed for project setup all the way through to completion. It is important that all information related to the billing of projects be communicated between the MSCS and Business Office teams in a timely manner and entered accurately by the MSCS team so that billing is not delayed. 

Prior to start of project:

• Ensure the following information is in Function Fox when setting up the job:
  • Partner phone number
  • Partner email address
  • Project account number to be charged

During the project: Once any vendor invoices are received, please add a note in the Blog with the below information. This needs to be done within 48 hours of receipt so that the Business Office stays in the loop for recordkeeping purposes. Please include: 

• Vendor name
• Amount
• Whether it will be billed back or paid directly by client
• Be sure to log any expenses on the expense tracking sheet: FY25 MSCS Expense Tracking Sheet

You can also begin the invoice review process by checking the invoice for the accuracy of the agreed-upon amount and by confirming that the invoice is made out to the correct entity (NC State University or NCSU Foundation). Once you’ve done these things, please send to the Business Office for their review and they will process payment accordingly. 

After project work is completed:

Please mark the job for “billing review” as soon as the work is completed. Please ensure that the below has been done:

• All billable hours entered
• All invoices attached in Function Fox
• All costs added in Function Fox – example costs include: ad costs, video costs (Rev, Premium Beat), print costs, design costs, etc.
• All necessary comments are added to the Blog
• If there are no billable hours, make note in the Blog
• Submit the job for “Billing Review” and tag  the MSCS Director
• Once job has been review, the MSCS Director will move to “Ready for Billing” and tag you and the Business Office. 

End-of-Year Considerations

NC State’s Fiscal Year runs from July 1st through June 30th. In order for all on-campus Business Offices to close out the fiscal year, they need to submit billing well in advance of the last day of June to ensure funds are received and used by the end of the year. 

UComm finalizes its billing services mid-May and the MSCS and Business Office teams will meet and work together to finalize the billing for each individual job so that it is clear to all what will be billed or partially billed. The MSCS team will need to communicate this deadline proactively to their clients so they can prepare as well. 

There are formal cutoff dates for end-of-year billing including PO’s. The Business Office will proactively communicate these to the MSCS team. 

Frequently Asked Questions 

What is a PO? 

• PO stands for “purchase order.” PO’s are used for most purchases over $5,000 and are submitted to NC State’s Purchasing department to go out for bid. This is part of the state’s regulations to ensure that the state is not overpaying for products or services. 
• The PO process can take up to 6 weeks to complete, so it is imperative to get this process started as soon as possible after the job estimate is signed. For more info about the process, please see link. 
• The financially responsible department or college will have their Business Office submit the PO for purchasing. For example, if PCOMM needs a printing service that will cost over $5,000, the PCOMM Business Office needs to submit a PO to Purchasing for print services. 

What are “Foundation Funds”? 

• Foundation funds are non-state appropriated funds donated to the foundation by private individuals and entities. Not all departments have access to these types of funds, and these funds have different purchasing rules from state appropriated funds. 
• UCOMM has projects (accounts) funded by the NC State University Foundation. Forms and information including the tax exempt form and w-9 for this foundation can be found here. Contact the UCOMM Business Office for questions related to foundation funds.