What is the difference between a transfer-in and a transfer-out?
A transfer-in is a positive infusion recorded as a non-operating revenue that adds to an accounts bottom line cash position. A transfer-out on the other hand is treated as a negative in the non-operating expenditure section since cash is leaving the account and thus reducing the accounts bottom line cash position. Transfers-in are sometimes necessary to offset a negative cash balance, to offset the cost of a large purchase or to offset a decline in revenues. From an accounting perspective transfers must net out. In other words, the minuses must be offset by an equivalent amount of positives in posting. During the budget process, the University Business Office requires business plans to detail the specific accounts and amounts where transfers-out are being shifted to. Note, a single transfer out can benefit several accounts as long as the minuses and pluses equal.
