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Interagency Payments and Receipts for Goods and Services (APS 014)

FPP A.028

Additional Procedures

Entering Credits

An agency may use the REVERSE field when processing an interagency credit for a previous payment. The REVERSE field can be used only in those cases where the net amount of the interagency payment is positive.


Agency A owes Agency B $500 for supplies. Agency B owes Agency A $200 for returned supplies. Agency A must:

  • Enter an interagency payment transaction for the $500 owed.
  • Enter an interagency payment transaction of $200 for the credit using an R in the REVERSE field and:
    • The same expenditure object code as used for the original purchase.
    • The original Program Cost Account (PCA).

The net result is a $300 payment to Agency B.

Correcting Transactions

To correct interagency transactions that impact only one agency’s accounts, use T-codes 921 and 921R, or 931 and 931R using Document Type J. If the original transaction used T-code 970, T-code 179/179R must be used on the correction to include budget GL accounts.

CAPPS logo

CAPPS Agencies can make these corrections through CAPPS or make the USAS transaction directly in USAS. If the agency makes the above entry directly in USAS, then the agency will need to create a GL journal using a manual (Man) T-code in CAPPS.

Interagency Contracts

For transactions equal to or over $50,000

Formal written interagency contracts are required when the total for all transactions is $50,000 or more. They must be approved by each agency’s administrator. Each agency must keep a copy of the contract and make it available to the Comptroller’s office if requested during a post-payment audit.

For transactions under $50,000

For transactions totaling less than $50,000, a formal written interagency contract is not required. However, agencies are still required to maintain documentation of the agreement. The documentation must be made available to the Comptroller’s office if requested during a post-payment audit.

CAPPS logo

CAPPS Agencies should submit interagency payments for goods and services using the CAPPS Accounts Payable module. The CAPPS purchasing agency will issue a payment to the selling agency by entering the transaction in CAPPS.

Enter a voucher in the CAPPS Accounts Payable module with a Payment Type of T. Enter the RTI number provided by the selling agency in the RTI field.

Agencies participating in an IAC where the payee agency intends to pay state employees from IAC proceeds are advised to include a clause in the agreement or maintain documentation prescribing additional payable amounts related to funding equity for employee benefit payments. Ex: A percentage to be paid in addition to other billable services for agencies who intend to pay an IAC invoice from funds other than GR.

Purchase Surplus Property

A state agency may purchase surplus property at a Texas Facilities Commission storefront location using an agency procurement card, thus bypassing the ITV process in USAS.